Marketing HW #4

Marketing HW #4 - Adam Bottorff Marketing HW Assignment 4...

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Adam Bottorff 11/5/2010 Marketing HW Basu Assignment 4 1. A. BEQ= FC/P-VC 200,000/75-50 BEQ= 8000 B. BEQ= FC/P-VC 200,000/100-50 BEQ= 4000 2. A. P= VC+(FC+IIt/Q) 50+ (200,000+100,000/5000) P= 110 B. P= VC+(FC+IIt/Q) 50+(200,000+100,000/10000) P= 80 3. A. P-VC 80-30 30 B. P-VC/P 80-30/80 .375 C. PxQ 80x10000 800000 D. (P-VC)xQ (80-30) x 100000 500000 E. II= (P-VC) x Q- FC (80-30) x 10000- 200000 300000 4. A. New-Old/Old x 100% (81-30)
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31 b. (81-50)/81 =.383 c. Change in P= (81-80)/80= 1.25% Change in Q= (-4%)(1.25%)=- 5% New Q=(1-.05)*10,000= 9,500 units d. 81(9,500 )=$769,500 e. (81-50)(9,500 )=$294,500 f. (81-50)(9,500)-20,000 =$94,500 5. a. (78-50 )=$28 b. (78-50)/78 =.359 c. Change in P=(78-80)/80=- 2.5% Change in Q=(-4%)(-2.5%)= 10% New Q=(1+.10)*10,000= 11,000units d. 78(11,000 )=$858,000 e. (78-50)(11,000 )=$308,000 f. (78-50)(11,000)-20,000 =$108,000 Bid Price Probability of Winning the bid Profit if Win (Bid Price- Cost) Expected Profit (Bid Price- Cost) x P(win) 220,000 1 20,000
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Marketing HW #4 - Adam Bottorff Marketing HW Assignment 4...

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