ex_28 - Mizuno is considering entering the Canadian...

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Mizuno is considering entering the Canadian baseball bat market for the next five years. They have forecast the following: 1 million bats will be sold in Canada each year. They will have 5% of the market this year, to grow by 10% each year (i.e. market share next year will be (1.1)(.05), or 5.5%). Variable costs will be $15 per bat this year, growing by 3% per year. Fixed costs will be $2 million per year. They will have to spend $5 million on manufacturing equipment today
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This note was uploaded on 11/02/2011 for the course ACTSC 371 taught by Professor Wood during the Fall '08 term at Waterloo.

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