Determine the relevant sales level


Captain's Cereal is considering introducing the variation of its current breakfast cereal, Crunch Stuff. This new cereal will be similar to old, with the exception that it will have sugar-coated marshmallows shaped in the form of stars. The new cereal will be called Crunch Stuff n' Stars. It is determined that the sales for the new cereal will be $25 million; but, 20% of those sales will draw from former Crunch Stuff customers who have switched to Cruch Stuff n' Stars and who would not have switched if new product had not been introduced. Determine the relevant sales level to consider when deciding whether or not to introduce Crunch Stuff n' stars?

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Mathematics: Determine the relevant sales level
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