Add the new product to its line

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Reference no: EM131094972

Yepuda expects to sell 1 million units of the new styling foam in the first year after introduction, but it expects that 60% of those sales will come from buyers who normally purchase Yepuda's styling gel. Yepuda estimates that it would sell 1.5 million units of the gel if it did not introduce the foam. If the fixed cost of launching the new foam will be KRW 100,000,000 during the first year, should Yepuda add the new product to its line? Why or why not?

Reference no: EM131094972

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