(d) Break-Even Cannibalization Rate (BECR)
Husk Inc. is Iowa's leading manufacturer of corn-related novelties and paraphernalia. Husk has decided to break into the lucrative corn market of Nebraska gradually. They plan on introducing Colonel Kernel, the talking corn on the cob, to the Nebraskan market. The unit contribution is roughly $3.50
Eventually, Husk plans to release a second figurine, Willy Maize, to rekindle interest in corn-related novelties. The company expects to get a contribution of $2 per Willy.