Advanced Problems for Spreadsheet Application

These problems are available in MyFinanceLab.

  1. Erosion costs . Ice Cream City plans to introduce a new flavor, wild berry, to its current set of five flavors, which include vanilla, French vanilla, strawberry, chocolate, and mint chocolate. The new sales of wild berry are projected as follows:

    Year 1 2 3 4 5 6 7 8 9
    Sales $130,000 $145,000 $167,000 $192,000 $210,000 $230,000 $235,000 $230,000 $230,000

    The expected sales will come from both new customers and current customers who switch flavors. The current projected sales for the existing flavors (assuming no introduction of the new flavor) are

    Projected Sales
    Year 1 2 3 4 5 6 ...

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