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1 Let s stretch a little on this one Assume Shannon s Irish Red sells...

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Basic Math

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1 Let s stretch a little on this one Assume Shannon s Irish Red sells 1 000 pints per month in the absence of any cannibalization Assume also that the new Irish Stout will sell 500 pints per month The relevant price and cost data are Price Irish Red 5 00 Unit Variable Costs 2 75 Irish Stout 5 34 3 25 What will be the maximum percentage cannibalization that can exist before the overall change in contribution dollars becomes negative Express your answer in percentage form to the nearest percent e g 99 49 ounds down to 99 99 50 rounds up to 100 Do not include the symbol

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