General Mills Just Is Undertaking an Analysis on a New

question 55

Multiple Choice

General Mills just is undertaking an analysis on a new cereal. The firm realizes that if they come out with a new product it would affect sales of existing products? What is the best course of action for General Mills in this analysis?

• A) Treat the reduction of sales from existing cereals as a sunk cost.
• B) Account for the reduction of sales from existing cereals in the projection of cash flows on the new product.
• C) Include the allocated costs of the new cereal in the sales of the pre-existing products.
• D) Ignore the fact that sales of other products will be affected.

---

Definitions:

REM Sleep

A stage of sleep characterized by rapid eye movement, increased brain activity, vivid dreaming, and temporary paralysis of major muscles.

Stage 4 Sleep

The deepest phase of NREM sleep, characterized by delta waves and minimal physiological activity, considered crucial for restorative sleep.

Brain Wave Patterns

Brain wave patterns refer to the electrical activity in the brain, categorized into different types like alpha, beta, delta, and theta waves, each associated with different states of consciousness.

Spatial Neglect

A neurological disorder characterized by the failure to attend or respond to stimuli presented on the side opposite the brain lesion.