For CBS 2007 Case, I don't quite get it: why from every 7 years people change the refrigerator, you can get the market size?
AAdditonally, I don't understand their breakeven here:
COGS of 80% over price does not seem to be completely out of what we would expect in a manufacturing company. I would worry about COGS being just 25%, which will signal that reducing price by 20% is not a good idea to attain 30% more sales.
Casebook link: https://www.andreadd.it/appunti/post-laurea/BusinessCase/ebook/CaseBook-Columbia2007.pdf
(edited)