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Unformatted text preview: product. 1. What brand development strategy is Mars undertaking with M&M premiums? 2. Assume the company expected to sell 300 million ounces of M&M Premiums within the first year after introduction but expected half of those sales will come from buyers who would normally purchase M&M regular candies (that is, cannibalized sales). Assuming that the sales of regular M&M candies are normally 1 billion ounces per year and that the company will incur an increase in fixed costs of $5 million during the first year of production for M&M Premiums, will the new product be profitable for the company?...
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- Spring '11