Herb Co sells two loose leaf teas, the "Cold and Flu Brew" and the "Breathe Easy", in two package sizes: ¼ pound and 1 pound. The Cold and Flu Brew is priced at $12.29 for ¼ pound and $27.32 for 1 pound, while the Breathe Easy is priced at $13.59 for ¼ pound and $30.07 for 1 pound. The variable cost of producing Cold and Flu Brew is $0.35 per ounce, and for Breathe Easy, it is $0.50 per ounce. According to their forecast, they will sell 6,000 quarter pound and 9,500 one-pound packages of Cold and Flu Brew. They expect to sell 5,000 quarter pound and 7,000 one-pound packages of Breathe Easy next year. The management team is considering the launch of a new tea called Echinacea Root priced at $17.52 for ¼ pound and $38.93 for 1 pound with a variable cost of $0.75 per ounce. They forecast selling 4,000 quarter pound and 2,000 one-pound packages in the first year. Fifty percent of both package size sales are expected to be incremental demand. Of the quarter pound packages, 20% is expected to come from cannibalizing Cold and Flu Brew sales and the remaining 30%...