Homework: Homework Three Save Score: 0 of 2 pts 2 of 10 (0 complete) Hw Score: 0

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Homework: Homework Three Save Score: 0 of 2 pts 2 of 10 (0 complete) Hw Score: 0%, 0 of 20 pts P12-6 (similar to) Question Help (Determining relevant cash flows) Captain's Cereal is considering introd old, with the exception that it will contain sugar-coated sales for the new cereal will be $24 million, however, 23 percent of those sales will draw from would not have switched if the new product had not been introduced. What is the relevant sales level to consider c ucing a variation of its current breakfast cereal, Crunch Stut. This new cereal will bo similar to the of stars. The new cereal will be called Crunch Stuff n' Stars. It is estimated that the marshmalows shaped in the form former Crunch Stulf customers who have switched to Crunch Stuff ni Stars and who Stars? when deciding whether or not to introduce Crunch Stuff r The relevant sales level to consider when deciding whether to introduce Crunch Stuff n' Stars is S(Round to the nearest dolar.) Enter your answer in the answer box and then click Check Answer

Explanation / Answer

We need to deduct the 23% of sales from 24 million

0.23 * 24,000,000 = 5,520,000

Sales = 24,000,000 - 5,520,000 = 18,480,000 or 18 million

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