Decide whether to sell both SKUs

Work out the condition under which adding the Vegan burger increases total profit, given a Regular unit margin of $3, a Vegan unit margin of $2, fixed Vegan costs $F$ (training plus supplier retainer), and a cannibalization rate $c$ (the fraction of Vegan sales that would have been Regular). Write the break-even Vegan unit sales as a function of $F$ and $c$, explain the edge cases $c = 0$ and $c = 1$, and describe how you would estimate $c$ in practice.

Overview: This question tests a data scientist's ability to model profit impact, perform break-even analysis, and account for cannibalization effects using unit contribution margins and fixed costs.

This question is drawn from a Capital One data scientist interview experience.