P& g introduced its duncan hines ready-to-spread frosting in a small geographic area. when general foods became aware of the product, it rushed to market its own betty crocker ready-to-spread frosting, which eclipsed the duncan hines product introduction. general foods was able to enter the stage of the new-product development process before p& g could.
a. commercialization
b. business analysis
c. idea generation
d. screening
e. product concept development

Varto company has 9,400 units of its sole product in inventory that it produced last year at a cost of $23 each. this year’s model is superior to last year’s, and the 9,400 units cannot be sold at last year’s regular selling price of $42 each. varto has two alternatives for these items: (1) they can be sold to a wholesaler for $8 each, or (2) they can be reworked at a cost of $251,100 and then sold for $34 each. prepare an analysis to determine whether varto should sell the products as is or rework them and then sell them.