Photo of a laptop on a table (d) Break-Even Cannibalization Rate (BECR)

A start-up computer company is in the process of introducing their first line of computers. These computers are high in performance, ""radically slim"" in design and have a unit contribution of $500

The company also plans on releasing a second line of computers after the first line is well established. The second line computers are mediocre in performance, "cumbersome yet manageable" in design, and have a unit contribution of $250.

BECR = 250/500 = 50%