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Estimates a weighted contribution margin

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Question: UBike's new "ComfortPlus" bicycle seat is a great product, but...it is sure to cannibalize UBike's established "SuperSeat." The established "SuperSeat" produces a contribution margin of $16.86 for UBike. The company forecasts a contribution margin of $12.45 on the new "ComfortPlus" seat. UBike estimates a weighted contribution margin of $10.00 for the new "ComfortPlus" seat. If UBike introduces the new product and sells 44,400 units of it, what will be UBike's NET CHANGE IN TOTAL CONTRIBUTION across both products, accounting for the cannibalization?

Reference no: EM133345317

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