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Tillamook Farms Invests in a New Kind of Frozen Dessert

Question 37

Multiple Choice

Tillamook Farms invests in a new kind of frozen dessert called polar cream that becomes very popular.So many new customers come to the store that the sales of existing ice cream products are increased.The extra sales revenue


A) should not be counted as incremental revenue for the polar cream project because the sales come from existing products.
B) are synergistic effects that should be counted as incremental revenues for the polar cream project.
C) are cannibalized sales that should be excluded from the analysis.
D) should be included in the analysis, but not the cost of the ice cream that is sold as that is a recurring expense.

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