Photo of corporate building skyline (d) Break-Even Cannibalization Rate (BECR)

The Company of Corporate Conglomerations (3C) has recently developed a new product. The product has an average unit contribution of $20.

3C would also eventually like to release a cheaper product in the same line as the aforementioned new product. The cheaper product will have an average unit contribution of $14.

BECR = 14/20 = 70%