The coffee shop chain already offers 3 types of drinks, each comes in 2 sizes. The coffee shop wants to add a breakfast sandwich and chicken nuggets. Current sales information of the existing drinks and estimated sales information for new foods according to the marketing consultant are:
Unit Price sales
Small Hot Chocolate Large Hot Chocolate Breakfast Sandwich Chicken Nuggets
$2.50 500,000 $3.50 350,000 $2.00 120,000 $2.70 100,000 $3.00 100,000 $3.70 80,000 $4.50 50,000 (estimate) $5.00 60,000 (estimate)
- 2) Marketing consultant thinks that the market for the existing drinks is mature and the unit sales will not grow anymore. However, he believes that the sales of the 2 new products will grow by 5% per year for the next 10 years.