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2) (What is the breakeven in dollars? Good foods marketed a wide range of food products. Among the best known were the "Ann Anderson" line of cake, frostine, and brownie mbes, Good foods also marketed a number of cereals, flour products, frozen and refrigerated foods. The name "Ann Andersan" was one of Good Foods' prime assets. it had been carefuly cultivated with over twenty million dollars having been spent to put the name across to the public. Small Appliance Project In 2016 a special project was started in which a group of engheers developed prototypes of various electrical appliances. Four products, a toaster, efectric fryine pan, iron, and cotfeemaber were developed. Severat conesmer tests of these four applances fud been conducted throughout the product develepment procest. Al four applances compared favoratly with. competicors durhe home-use tests. These tests were conducted with appliance owners throughout the United States. While the new appliances were not major tresakthrought in design, they did incorporate the mout up-to -dgtr fratures that chancterize competielve applances. All of Good Foods' home use tests were epndacted "blind", the appliance owner was not teid who manufactured the sopliances The campetibion in the appliance business was chacactertired as interno weth many posibaity. local supermarket. This pricing polky allowed a 558 muk-up on the retal seling price for the supermarkets. This mark-up represented a nubstantialy hieher murein. than supermarkets recelve on lifens such as cereat, curned goods, ete. Good Food Incis unit costs are about the same for alf four products. Maraphenent expected this margin to be a mujor incentive for the supermarkets to handle the new applance fine. Because Amn Anderson was such a well-established brand rume onlymoderate advertsing was planned for the new line it was argued that homemalers visit supermarkets at least once a week and that they nutaraly will colice the applange diaplay. An advertiaing butget of 55,5 mallion a year was proposed for the fint fow vears of new product introduction, A product mainuger from the cereal divion wan Table in? TABLE I Kitchen Electrics Saler Patterns and Projections (individual units) Table II Cost Data a Six units were packaged in one case. For example, six coffeemakers are to be shipped in one case. b To be depreciated over 10 years - standard accounting practice. c These costs represented the costs to develop the prototypes, conduct consumer tests and other cost incurred in the new product development process

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