3.3 BriteSmile brand of teeth whitening products is considering adding a modified ver- sion of the product-a gel product in addition to its regular paste product. Variable costs and prices to wholesalers are: Unit selling price Unit variable costs Current paste product $5.00 $1.50 New gel product $6.50 $3.25 BriteSmile expects to sell 2 million units of the new gel product in the first year after introduction, but it estimates that only 30% of those sales will come from buyers who do not already purchase the company's paste product (that is, new customers). BriteSmile estimates that it would sell 3 million units of the current paste product if it did not introduce the gel. If the fixed costs of launching the new gel product will be $300,000 during the first year, should BriteSmile add the new gel product to its line? Why or why not?
3.3 BriteSmile brand of teeth whitening products is considering adding a modified ver- sion of the product-a gel product in addition to its regular paste product. Variable costs and prices to wholesalers are: Unit selling price Unit variable costs Current paste product $5.00 $1.50 New gel product $6.50 $3.25 BriteSmile expects to sell 2 million units of the new gel product in the first year after introduction, but it estimates that only 30% of those sales will come from buyers who do not already purchase the company's paste product (that is, new customers). BriteSmile estimates that it would sell 3 million units of the current paste product if it did not introduce the gel. If the fixed costs of launching the new gel product will be $300,000 during the first year, should BriteSmile add the new gel product to its line? Why or why not?
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
Related questions
Question
![3.3 BriteSmile brand of teeth whitening products is considering adding a modified ver-
sion of the product-a gel product in addition to its regular paste product. Variable
costs and prices to wholesalers are:
Unit selling price
Unit variable costs
Current paste product
$5.00
$1.50
New gel product
$6.50
$3.25
BriteSmile expects to sell 2 million units of the new gel product in the first year after
introduction, but it estimates that only 30% of those sales will come from buyers
who do not already purchase the company's paste product (that is, new customers).
BriteSmile estimates that it would sell 3 million units of the current paste product if
it did not introduce the gel. If the fixed costs of launching the new gel product will be
$300,000 during the first year, should BriteSmile add the new gel product to its line?
Why or why not?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F09c8adcb-ea3e-4ec4-88db-c819e1644168%2F12e06859-0859-46ed-ae13-2cb87a594c31%2F5az3seb_processed.png&w=3840&q=75)
Transcribed Image Text:3.3 BriteSmile brand of teeth whitening products is considering adding a modified ver-
sion of the product-a gel product in addition to its regular paste product. Variable
costs and prices to wholesalers are:
Unit selling price
Unit variable costs
Current paste product
$5.00
$1.50
New gel product
$6.50
$3.25
BriteSmile expects to sell 2 million units of the new gel product in the first year after
introduction, but it estimates that only 30% of those sales will come from buyers
who do not already purchase the company's paste product (that is, new customers).
BriteSmile estimates that it would sell 3 million units of the current paste product if
it did not introduce the gel. If the fixed costs of launching the new gel product will be
$300,000 during the first year, should BriteSmile add the new gel product to its line?
Why or why not?
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![Principles Of Marketing](https://www.bartleby.com/isbn_cover_images/9780134492513/9780134492513_smallCoverImage.gif)
Principles Of Marketing
Marketing
ISBN:
9780134492513
Author:
Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:
Pearson Higher Education,
![Marketing](https://www.bartleby.com/isbn_cover_images/9781259924040/9781259924040_smallCoverImage.gif)
Marketing
Marketing
ISBN:
9781259924040
Author:
Roger A. Kerin, Steven W. Hartley
Publisher:
McGraw-Hill Education
![Foundations of Business (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781337386920/9781337386920_smallCoverImage.gif)
Foundations of Business (MindTap Course List)
Marketing
ISBN:
9781337386920
Author:
William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:
Cengage Learning
![Principles Of Marketing](https://www.bartleby.com/isbn_cover_images/9780134492513/9780134492513_smallCoverImage.gif)
Principles Of Marketing
Marketing
ISBN:
9780134492513
Author:
Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:
Pearson Higher Education,
![Marketing](https://www.bartleby.com/isbn_cover_images/9781259924040/9781259924040_smallCoverImage.gif)
Marketing
Marketing
ISBN:
9781259924040
Author:
Roger A. Kerin, Steven W. Hartley
Publisher:
McGraw-Hill Education
![Foundations of Business (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781337386920/9781337386920_smallCoverImage.gif)
Foundations of Business (MindTap Course List)
Marketing
ISBN:
9781337386920
Author:
William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:
Cengage Learning
![Marketing: An Introduction (13th Edition)](https://www.bartleby.com/isbn_cover_images/9780134149530/9780134149530_smallCoverImage.gif)
Marketing: An Introduction (13th Edition)
Marketing
ISBN:
9780134149530
Author:
Gary Armstrong, Philip Kotler
Publisher:
PEARSON
![MKTG 12:STUDENT ED.-TEXT](https://www.bartleby.com/isbn_cover_images/9781337407595/9781337407595_smallCoverImage.gif)
![Contemporary Marketing](https://www.bartleby.com/isbn_cover_images/9780357033777/9780357033777_smallCoverImage.jpg)
Contemporary Marketing
Marketing
ISBN:
9780357033777
Author:
Louis E. Boone, David L. Kurtz
Publisher:
Cengage Learning