sokve a and b (Identifying incremental revenues from new product innovations)...
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sokve a and b
(Identifying incremental revenues from new product innovations) Morton Food Products, Inc. is a regional manufacturer of salty food snacks. The firm competen directly with the national brands including Frito Lay, but only in the U.S. Southeast Last year Morten sold $300 million of its various chip products and hopes to increase its sales in the coming year by offering a new line of baked chips. The new product line is expected to generato $36 million in sales next year. However, the firm's analysis estimate that about 40 percent of these revenues will come from existing customers who switch their purchases from one of the firm's existing products to the new healthier baked chips a. What level of incremental sales should the company analyst attribute to the new line of baked chips? b. Assume that 15 percent of Morton's existing customers are actively looking for a healthier snack alternative and will move to another company's baked chip offering Morten does not introduce the new product. What level of incremental sales would you attribute to the new line of baked chips in this circumstance? a. The level of incremental sales that the company analyst should attribute to the new line of baked chips is $. Round to the nearest dollar)

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