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Finance Assignment | Professional Writing

Author:
June 10th, 2020

Problem 11-2 (similar to) Question Help (Relevant cash flows) Captins’ Cereal is considering introducing a variation of its current breakfast cereal, Crunch Stuff. The new cereal will be similar to the old with the exception that it will contain sugarcoated marshmallows shaped in the form of stars and will be called Crunch Stuff n’ Stars.

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It is estimated that the sales for the new cereal will be $23 million; however, 30 percent of those sales will be former Crunch Stuff customers who have switched to Crunch Stuff ‘ Stars but who would not have switched if the new product had not been introduced. What is the relevant sales level to consider when deciding whether to introduce Crunch Stuff n’ Stars? The relevant sales level to consider when deciding whether to introduce Crunch Stuff ‘ Stars is $ . (Round to the nearest dollar.) Enter your answer in the answer box and then click Check Answer. All parts showing Clear All Check Answer

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