Leaf's Paper Company is planning to launch a new notebook product that is water resistant. The company wants to sell 30,000,000 of the new notebooks next year and wants to know what trial rate is required to achieve this goal. The market research group forecasts an awareness rate of 73% and an AČV% of 52%. Of those that try the product by purchasing 1 notebook, 24% will repurchase 5 notebooks per year. There are 180,000,000 notebook consumers in the target market. Total fixed costs to Leaf Paper Company to manufacture this new notebook are $10,000,000, with variable costs of $2.73 per notebook. What trial rate is required to achieve the company's goal?

Leaf's Paper Company is planning to launch a new notebook product that is water resistant. The company wants to sell 30,000,000 of the new notebooks next year and wants to know what trial rate is required to achieve this goal. The market research group forecasts an awareness rate of 73% and an AČV% of 52%. Of those that try the product by purchasing 1 notebook, 24% will repurchase 5 notebooks per year. There are 180,000,000 notebook consumers in the target market. Total fixed costs to Leaf Paper Company to manufacture this new notebook are $10,000,000, with variable costs of $2.73 per notebook. What trial rate is required to achieve the company's goal?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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