23 Jul WHAT WOULD EXPLAIN THIS CHANGE?
Solar Confectionary develops a new candy bar and plans to sell each bar for $1. Solar predicts that Show more Solar Confectionary develops a new candy bar and plans to sell each bar for $1. Solar predicts that 1 million candy bars will be sold in the first year if the new candy bar is produced and sold and includes $1 million of incremental revenues in its capital budgeting analysis. A senior executive in the company believes that 1 million candy bars will be sold but lowers the estimate of incremental revenue to $700000. What would explain this change? a lower discount rate excessive marketing costs to sell the 1 million candy bars cannibalization of 300000 of Solar Confectionary other candy bars a higher selling price for the new candy bars Show less
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