Business, 02.03.2020 19:12 sanic123

Ninkasi is launching a new product: hard ginger ale, with expected sales of $10 million this year. They do expect there will be loss of sales of $1 million this year and next year in their other products as customers switch to drinking the new ginger ale. The gross profit margin for the new ginger ale is 40%, the gross profit margin of all of the brewer's other products is 30%, and the brewer's marginal corporate tax rate is 35%. Assume all other expenses remain the same. What are the incremental cash flows from operations arising from the new product in year 1

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Ninkasi is launching a new product: hard ginger ale, with expected sales of $10 million this year. T...

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