Calculate weighted contribution margin for the new product, Financial Management

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Calculate weighted contribution margin for the new product

Ace Products recognizes that its new Product 8 will compete with its existing Product 7. Ace Products estimates a 23% cannibalization rate. Ace Products sells Product 7 for $60 each, with variable cost of $32.60. Ace expects to price the new Product 8 at $75 each, with variable cost of $49.91 per unit. Calculate weighted contribution margin for the new Product 8. Rounding: penny.

MARKETING METRICS IS THE SUBJECT OF THE QUESTION.

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Financial Management: Calculate weighted contribution margin for the new product

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Financial Management: Calculate weighted contribution margin for the new product

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