Question

Quince products is a small company in southern california that makes jams and preserves. recently, a sales rep from one of the company's suppliers suggested that quince could increase its profitability by 50 percent if it introduced a second line of products, packaged fruit. she offered to do the analysis and show the company her assumptions.

Answer 1

In order to determine the potential profitability a question could be presented to the customer "If they would purchase packaged fruit if the company were to provide it?" If 100 customers who now spend $100. on the current products would gladly pay $150. if the packaged fruit were added to their purchase, then the profitability would increase 50 percent.