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What level of incremental sales is associated

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Question - Pisa? Pizza, a seller of frozen? pizza, is considering introducing a healthier version of its pizza that will be low in cholesterol and contain no trans fats. The firm expects that sales of the new pizza will be $21 million per year. While many of these sales will be to new? customers, Pisa Pizza estimates that 46% will come from customers who switch to the? new, healthier pizza instead of buying the original version.

Required -

a. Assume customers will spend the same amount on either version. What level of incremental sales is associated with introducing the new? pizza?

b. Suppose that 55% of the customers who will switch from Pisa? Pizza's original pizza to its healthier pizza will switch to another brand if Pisa Pizza does not introduce a healthier pizza. What level of incremental sales is associated with introducing the new pizza in this? case?

Reference no: EM133069970

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