For the U.S. soft drink market, of the 300 million people in the U.S., 80% of the population is the maximum number of consuming

Question

3 years ago

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For the U.S. soft drink market, of the 300 million people in the U.S., 80% of the population is the maximum number of consuming

units. The average soft drink consumer buys 365 soft drinks a year at an average price of $0.98 per drink. What is the annual market potential of soft drink in dollar value

Business

1 answer:

neonofarm [45] · Answer 1 · 2022-05-13T08:40:41+03:00

Answer:

Annual market potential = $85,848 millions

Explanation:

The annual market potential is the expected sales value for the soft drink product for a year should the maximum number of potential consumers purchase the product at the average price.

Annual market potential = Average price × No of consuming unit × consumption rate per annum

Maximum number of consuming unit = 80%× 300 million =240 million

Consumption rate per buyer per annum = 365

Average price = $0.98

Annual market potential ($) = 0.98× 240× 365 =$85,848 millions

Annual market potential = $85,848 millions