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Andrew [12]
2 years ago
14

Determine the market potential for a product that has 20 million prospective buyers who purchase an average of 2 per year and pr

ice averages $50. How many units must a company sell if it desires a 10% share of this market
Business
1 answer:
Gnoma [55]2 years ago
6 0

4,000,000 units should be sold a company

<u>Explanation:</u>

<u>Calculating the sales in units:</u>

It has been given that the toal market demand is $20 million, average quantity purchased by buyer per year is 2 units, price average is $50, and the desired share of the market is 10%.

Q=n * q * p

Where:

Q = Total market demand,

N = number of buyers in the market, q = average quantity purchased by the buyer per year,

P = price of average unit

$\mathrm{Q}=20,000,000$ buyers $* 2$ per unit per buyer $* \$ 50$ per unit

= $2,000,000,000

Market share = $(20,000,000 \text { buyers } * 2 \text { units per buyer }) * 0.1$

= 4,000,000 units

Hence, the company should sell 4 million units to achieve 10 percent market share.

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Lostsunrise [7]

Answer: Buying $200 stock in AT&T is an example of investment. As in this case the persons income exceeds his consumption and he buys new capital.

Borrowing $1000 from a bank to buy a car to use in business is also an investment as in this case buying a car is like investing in a cash flow producing asset, as the car will be an asset which will help earn money from the pizza business.

Explanation:

Roommate depositing $100 is an example of saving and not investing.

Taking out a mortgage and buying a house is an example of consumption and not investment.

3 0
3 years ago
Explain why supply and price are positively related
pishuonlain [190]

Answer:

see below

Explanation:

A positive correlation signifies that an increase in one variable results in the other variable moving in the same direction. Because supply and price are positively correlated, a price increase will increases supply. The opposite is also true.

Suppliers are business people whose main objective is to make profits. Higher prices give higher margins. Suppliers make higher profits when prices are high. The possibility of making higher profits motivates suppliers to increase supplies to the market. On the other hand, low prices may result in losses. When prices are low, supplies will shy away from the market to avoid making losses.

6 0
3 years ago
Philip Morris expects the sales for his clothing company to be $670,000 next year. Philip notes that net assets (Assets − Liabil
shutvik [7]

Answer:

the ending cash balance is $330,300

Explanation:

The computation of the ending cash balance is shown below:

Ending cash balance = Opening cash balance + Profit

= $270,000 + (9% × $670,000)

= $270,000 + $60,300

= $330,300

We simply added the opening cash balance and the profit so that the ending cash balance could come

Hence, the ending cash balance is $330,300

7 0
3 years ago
"Ginny sells bottled water from a small stand by the beach. On the last day of summer vacation, many people are on the beach, an
konstantin123 [22]

Answer:

Explanation:

Once out of Ginny sight, Alex faces a dilemma: Work very hard (put in all effort) or shirk (put in little effort). If he works hard, he'll sell enough water to generate $90 in earnings (not including his personal cost). If he shirks, he'll only generate $50 in earnings. After the end of the work, he'll split his earnings with Ginny and also get half of what she earns at her stand. In terms of Eric's total utility, it is worse for him to work hard. Close A If Alex works hard, Alex and Sunita together earn $270 ($180 + $90), of which Eric keeps $120. However, he loses $20 worth of utility by working hard. Therefore his net earnings is $100. If he shirks, Eric and Ginny together earn $270 ($200+ $70), of which Eric will keeps $120, while his personal cost is zero. Therefore Alex, individually, is better off when he shirks. A more better way of finding the solution to the problem is to note that from Eric's view, the amount of money he gets from Ginny's sales from the stand does not rely on his own sales.

3 0
3 years ago
The concept of designing marketing communications programs that coordinate all promotional activities—advertising, personal sell
sp2606 [1]

<u>Answer</u>:

The concept of designing marketing communications programs that coordinate all promotional activities—advertising, personal selling, sales promotion, public relations, and direct marketing—to provide a consistent message across all audiences is referred to as <u>Integrated Marketing Communications </u>

<u>Explanation</u>:

Integrated Marketing Communications refers to a unified approach adopted by the Company towards all promotional activities concerning a particular product or brand.  

It entails a consumer driven promotional base, where using various tools of promotion such as advertising, social media, public relations, among others, a comprehensive and consolidated message is put across to the consumer.

The biggest benefit arising out of having an integrated marketing communications strategy is that since each and every promotional activity is revolving around the same central idea, the message that is aimed to be put across to the consumer is effectively and efficiently delivered, leading to a great return on investments and consequently a bigger profit.    

4 0
3 years ago
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