Answer:
$5.52 million
Explanation:
Data provided in the questions
Lose sales per year = $23 million
After tax operating margin on sales is 24%
By considering the above information, the yearly side effect for introducing the new product is
= Lose sales per year × After tax operating margin on sales
= $23 million × 24%
= $5.52 million
We simply multiplied the lose sale per year with the after tax operating margin on sales so that the yearly side effect could come