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Andrew [12]
3 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]3 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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Answer:C. Real interest rates expected by British investors are 2 percentage points higher than the real interest rate expected by US investor.

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The real interest rate is the market interest rate less the inflation rate.

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3 years ago
Steve is preparing a market analysis for the joneses and has selected three comparable properties. how many adjustments should s
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7 0
1 year ago
A manager is trying to decide whether to purchase a certain part or to have it produced internally. Internal production could us
Sergio [31]

Answer:

For both 10,000 units and 20,000 units, the best alternative is Vendor B

Explanation:

Using the information provided in the question, we can write the following:

Annual Volume of 10,000 units

Internal Alternative 1

Variable costs = 170,000 (we multiply the variable cost per unit by total units)

Fixed costs = 20,000

Total costs = 370,000

Internal Alternative 2

Variable costs = 140,000

Fixed costs = 240,000

Total costs = 380,000

Vendor A

Total cost = 200,000 (we simply multiply the price by the quantity)

Vendor B

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The cheapest option is Vendor B

Now for the 20,000 units:

Internal Alternative 1

Variable costs = 340,000

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Total costs = 540,000

Internal Alternative 2

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5 0
3 years ago
In what ways do the benefits of free enterprise affect your daily life? List as many examples as you can. Consider neighborhood
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6 0
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Option B

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The general environment usually has a sturdy impact on a firm's level of achievement, officials must pursue biases and circumstances as they emerge and attempt to envision the associations of these biases and circumstances.

The environmental inquiry is an imperative tool. It is a manner to distinguish all the outside and subjective factors, which can influence the organization’s execution. The review involves valuing the level of threat, an opportunity the determinants might impersonate. These determinants are succeeding rendered into further means.

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