Man with out stretched hand holding pills (d) Break-Even Cannibalization Rate (BECR)

Pharmalodiagnosticon, an up and coming pharmaceutical company, is thinking of introducing a new product, Sweet Relief, into the crowded OTC market for pain relievers. The unit contribution for the drug is $5.

Also, Pharmalodiagnosticon is almost completed pushing a second new drug through the FDA. The new pill, PainAway Chewables, is an all-natural mild pain reliever that is targeted at the thrifty consumer. The unit contribution for PainAway is $3.

BECR = 3/5 = 60%