Total Sales Niche MainStream

YEAR1 YEAR2 YEAR1 YEAR2

A. Razor Unit Volume 1 1.5 3.3 4
B. Razor Manufacturing Price (in $) 9.09 7.83
C. Razor Sales (A*B) (in $) 9.09 13.635 25.839 31.32
D. Cartridge Unit Volume 4 10 9.9 21.9
E. Cartridge Manufacturing price (in $) 7.35 6.22
F. Cartridge Sales (D*E) (in $) 29.4 73.5 61.578 136.218
Total Sales (C+F) (in $) 38.49 87.135 87.417 167.538

Total Cost Niche MainStream

YEAR1 YEAR2 YEAR1 YEAR2
A. Razor Unit Volume 1 1.5 3.3 4
B. Razor Production Unit Cost (in $) 5 4.74
C. Razor Production Cost (A*B) (in $) 5 7.5 15.642 18.96
D. Cartridge Unit Volume 4 10 9.9 21.9
E. Cartridge Manufacturing price (in $) 2.43 2.24
F. Cartridge Sales (D*E) (in $) 9.72 24.3 22.176 49.056
G. Capacity Cost (in $) 0.61 0.87 1.71 2.45
H. Advertising (in $) 7 7 19 17
I. Consumer Promotion (in $) 6 6 17 14
J. Trade Promotion (in $) 2 3 6 8
Total Cost (in $) 30.33 48.67 81.528 109.466

Total Profit Niche MainStream

YEAR1 YEAR2 YEAR1 YEAR2
Operating Profit (Sales - Cost) (in $) 8.16 38.465 5.889 58.072
I. Razor Unit Volume after cannibalization 0.35 0.53 1.98 2.4
II. Contribution Per Unit for Razor (in $) 1.76
III. Cartridge Unit Volume after cannibalization 1.4 3.5 5.94 13.14
IV. Contribution Per Unit for Cartrdge (in $) 2.8
F. Total Cannibalization (in $) 4.536 10.7328 20.1168 41.016
G. Profit after Cannibalization (in $) 3.624 27.7322 -14.2278 17.056
Total Profit after 2 years (in $) 31.3562 2.82819999999998