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How would the 11 increase in demand effect the

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Unformatted text preview: ll price levels? How would the 11% increase in demand effect the optimal price of the drives? Would it be wise for Card Tech to put $4,800,000 into training and streamlining which would reduce the variable production costs by 2% for the coming year? G roup 1 Potential national market: 120,000,000 National M arket Projected Yearly Sales(K's) 1,575 1,376 1,202 1,105 898 833 54 9 4 33 T est Markets Market Number Market Size Price Projected Yearly S ales 1 2 3 4 5 6 7 8 3,920,000 4 ,500,000 1,610,000 4 ,990,000 2,4 80,000 1,4 10,000 3,080,000 4 ,270,000 $215.00 $265.00 $296.00 $306.00 $353.00 $365.00 $4 10.00 $4 4 0.00 51,4 50 51,600 16,127 4 5,950 18,559 9,788 14 ,091 15,4 08 Fixed Cost For The Year: $2,500,000 Variable Costs Q uantity 900,000 600,000 First N ext Further: Cost per unit $210 $120 $50 q Demand Data $ 5 00 a b c d $ 4 00 $ 300 Price $ 200 $ 100 $0 20 0 4 00 60 0 800 1,0 00 1,200 1,400 1,600 1,800 Quantity (K's ) Demand Function 12 10 8 6 4 2 0 0 2 4 6 8 10 12 q(K's) q (K's) 1,000 D(q) $373.53 R evenue Funct...
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This note was uploaded on 11/02/2012 for the course MATH 176 taught by Professor Unknown during the Fall '10 term at Pima CC.

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