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project1groups1 - TEST MARKET AND PRODUCTION COST DATA...

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Group 1 Potential national market: 120,000,000                Test Markets Market Number Market Size Price Projected Yearly Sales 1 3,920,000 $215.00 51,450 2 4,500,000 $265.00 51,600 3 1,610,000 $296.00 16,127 4 4,990,000 $306.00 45,950 5 2,480,000 $353.00 18,559 6 1,410,000 $365.00 9,788 7 3,080,000 $410.00 14,091 8 4,270,000 $440.00 15,408 Fixed Cost For The Year: $2,500,000 Variable Costs                          Quantity Cost per unit First 900,000 $210  Next 600,000 $120  Further: $50  Come up with a product, product name and a business name. 1 What price should be put on the new good in order to achieve the maximum profit? 2 How many items might you expect to sell during the coming year at the optimal price? 3 What yearly maximum profit can be expected from sales of the new product? 4 How sensitive is profit to changes away from the optimal quantity of items, as found above? 6 What profit is expected if the price is $277 7 How much should the company pay for an advertising campaign that would increase demand for your product by 11% at all price levels? 8 How would the 11% increase in demand effect the optimal price of the drives? 9 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? TEST MARKET AND PRODUCTION COST DATA
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Group 1 Potential national market: 120,000,000 Test Markets Market Size Price 1 3,920,000 $215.00 51,450 1,575 2 4,500,000 $265.00 51,600 1,376 3 1,610,000 $296.00 16,127 1,202 4 4,990,000 $306.00 45,950 1,105 5 2,480,000 $353.00 18,559 898 6 1,410,000 $365.00 9,788 833 7 3,080,000 $410.00 14,091 549 8 4,270,000 $440.00 15,408 433 Fixed Cost For The Year: $2,500,000 Variable Costs Quantity Cost per unit First 900,000 $210 Next 600,000 $120 Further: $50 q 0 $551.33 $0.00 $0 $0.00 -0.0003178 -$0.32 2 $550.70 $1.10 $420 -$418.90 -0.0003170 -$0.32 4 $550.06 $2.20 $840 -$837.80 -0.0003162 6 $549.43 $3.30 $1,260 -$1,256.70 -0.0003154 -$0.32 8 $548.80 $4.39 $1,680 -$1,675.61 -0.0003146 -$0.31 10 $548.17 $5.48 $2,100 -$2,094.52 -0.0003138 12 $547.55 $6.57 $2,520 -$2,513.43 -0.0003130 -$0.31 a -0.00000006 14 $546.92 $7.66 $2,940 -$2,932.34 -0.0003122 -$0.31 b 0.0002 16 $546.30 $8.74 $3,360 -$3,351.26 -0.0003114 c -0.3178 18 $545.67 $9.82 $3,780 -$3,770.18 -0.0003107 -$0.31 d 551.33 20 $545.05 $10.90 $4,200 -$4,189.10 -0.0003099 -$0.31 22 $544.43 $11.98 $4,620 -$4,608.02 -0.0003091 24 $543.82 $13.05 $5,040 -$5,026.95 -0.0003083 -$0.31 26 $543.20 $14.12 $5,460 -$5,445.88 -0.0003075 -$0.31 28 $542.59 $15.19 $5,880 -$5,864.81 -0.0003067 30 $541.97 $16.26 $6,300 -$6,283.74 -0.0003060 -$0.31 32 $541.36 $17.32 $6,720 -$6,702.68 -0.0003052 -$0.31 34 $540.75 $18.39 $7,140 -$7,121.61 -0.0003044 -$0.30 36 $540.15 $19.45 $7,560 -$7,540.55 -0.0003036 -$0.30 38 $539.54 $20.50 $7,980 -$7,959.50 -0.0003029 -$0.30 40 $538.93 $21.56 $8,400 -$8,378.44 -0.0003021 42 $538.33 $22.61 $8,820 -$8,797.39 -0.0003013 -$0.30 44 $537.73 $23.66 $9,240 -$9,216.34 -0.0003005 -$0.30 46 $537.13 $24.71 $9,660 -$9,635.29 -0.0002998 48 $536.53 $25.75 $10,080 ### -0.0002990 -$0.30 50 $535.93 $26.80 $10,500 ### -0.0002983 -$0.30 52 $535.34 $27.84 $10,920 ### -0.0002975 54 $534.74 $28.88 $11,340 -$11,311.12 -0.0002967 -$0.30 56 $534.15 $29.91 $11,760 ### -0.0002960 -$0.30 58 $533.56 $30.95 $12,180 ### -0.0002952 60 $532.97 $31.98 $12,600 ### -0.0002944 -$0.29 62 $532.38 $33.01 $13,020 ### -0.0002937 -$0.29 64 $531.79 $34.03 $13,440 ### -0.0002929 66 $531.21 $35.06 $13,860 ### -0.0002922 -$0.29 68 $530.63 $36.08 $14,280 ### -0.0002914 -$0.29 70 $530.04 $37.10 $14,700 ### -0.0002907 1,000 $373.53 72 $529.46 $38.12 $15,120 ### -0.0002899 -$0.29 74 $528.88 $39.14 $15,540 ### -0.0002892 -$0.29 76 $528.31 $40.15 $15,960 ### -0.0002884 78 $527.73 $41.16 $16,380 ### -0.0002877 -$0.29 80 $527.16 $42.17 $16,800 ### -0.0002870 82 $526.58 $43.18 $17,220 ### -0.0002862 -$0.29 84 $526.01 $44.18 $17,640 ### -0.0002855 -$0.29 86 $525.44 $45.19 $18,060 ### -0.0002847 -$0.28 88 $524.87 $46.19 $18,480 ### -0.0002840 -$0.28 90 $524.30 $47.19 $18,900 ### -0.0002833 -$0.28 92 $523.74 $48.18 $19,320 -$19,271.82 -0.0002825 94 $523.17 $49.18 $19,740 ### -0.0002818 -$0.28 96 $522.61 $50.17 $20,160 ### -0.0002811 -$0.28 98 $522.05 $51.16 $20,580 ### -0.0002803 100 $521.49 $52.15 $21,000 ### -0.0002796 -$0.28 102 $520.93 $53.14 $21,420 ### -0.0002789 -$0.28 104 $520.37 $54.12 $21,840 ### -0.0002781 106 $519.82 $55.10 $22,260 ### -0.0002774 -$0.28 108 $519.26 $56.08 $22,680 -$22,623.92 -0.0002767 -$0.28 1,000 $373.53 $373.53 110 $518.71 $57.06 $23,100 ### -0.0002760 112 $518.16 $58.03 $23,520 ### -0.0002753 -$0.28 114 $517.61 $59.01 $23,940 ### -0.0002745 -$0.27 116 $517.06 $59.98 $24,360 ### -0.0002738 118 $516.52 $60.95 $24,780 ### -0.0002731 -$0.27 120 $515.97 $61.92 $25,200 ### -0.0002724 -$0.27 122 $515.43 $62.88 $25,620 ### -0.0002717 124 $514.88 $63.85 $26,040 ### -0.0002710 -$0.27 126 $514.34 $64.81 $26,460 ### -0.0002703 -$0.27 128 $513.80 $65.77 $26,880 ### -0.0002695 130 $513.26 $66.72 $27,300 -$27,233.28 -0.0002688 -$0.27 132 $512.73 $67.68 $27,720 -$27,652.32 -0.0002681 -$0.27 134 $512.19 $68.63 $28,140 ### -0.0002674 136 $511.66 $69.59 $28,560 ### -0.0002667 -$0.27 138 $511.12 $70.54 $28,980 ### -0.0002660 -$0.27 140 $510.59 $71.48 $29,400 -$29,328.52 -0.0002653 142 $510.06 $72.43 $29,820 ### -0.0002646 -$0.26 144 $509.53 $73.37 $30,240 ### -0.0002639 -$0.26 146 $509.01 $74.32 $30,660 ### -0.0002632 148 $508.48 $75.26 $31,080 ### -0.0002625 -$0.26 150 $507.96 $76.19 $31,500 -$31,423.81 -0.0002619 -$0.26 152 $507.43 $77.13 $31,920 ### -0.0002612 154 $506.91 $78.06 $32,340 ### -0.0002605 -$0.26 156 $506.39 $79.00 $32,760 ### -0.0002598 -$0.26 158 $505.87 $79.93 $33,180 ### -0.0002591 160 $505.36 $80.86 $33,600 ### -0.0002584 -$0.26 162 $504.84 $81.78 $34,020 -$33,938.22 -0.0002577 -$0.26 164 $504.33 $82.71 $34,440 ### -0.0002570 166 $503.81 $83.63 $34,860 ### -0.0002564 -$0.26 168 $503.30 $84.55 $35,280 ### -0.0002557 -$0.26 170 $502.79 $85.47 $35,700 ### -0.0002550 172 $502.28 $86.39 $36,120 -$36,033.61 -0.0002543 -$0.25 174 $501.77 $87.31 $36,540 ### -0.0002536 176 $501.27 $88.22 $36,960 ### -0.0002530 -$0.25 178 $500.76 $89.14 $37,380 ### -0.0002523 -$0.25 180 $500.26 $90.05 $37,800 ### -0.0002516 182 $499.75 $90.96 $38,220 ### -0.0002510 -$0.25 184 $499.25 $91.86 $38,640 ### -0.0002503 -$0.25 186 $498.75 $92.77 $39,060 ### -0.0002496 188 $498.25 $93.67 $39,480 -$39,386.33 -0.0002490 -$0.25 190 $497.76 $94.57 $39,900 ### -0.0002483 -$0.25 192 $497.26 $95.47 $40,320 ### -0.0002476 194 $496.77 $96.37 $40,740 ### -0.0002470 -$0.25 196 $496.27 $97.27 $41,160 ### -0.0002463 -$0.25 198 $495.78 $98.16 $41,580 ### -0.0002457 200 $495.29 $99.06 $42,000 ### -0.0002450 -$0.25 202 $494.80 $99.95 $42,420 ### -0.0002443 -$0.24 204 $494.31 $100.84 $42,840 ### -0.0002437 206 $493.83 $101.73 $43,260 ### -0.0002430 -$0.24 208 $493.34 $102.61 $43,680 ### -0.0002424 -$0.24 210 $492.86 $103.50 $44,100 ### -0.0002417 212 $492.37 $104.38 $44,520 ### -0.0002411 -$0.24 214 $491.89 $105.26 $44,940 ### -0.0002404 -$0.24 216 $491.41 $106.14 $45,360 ### -0.0002398 218 $490.93 $107.02 $45,780 ### -0.0002392 -$0.24 220 $490.46 $107.90 $46,200 ### -0.0002385 -$0.24 222 $489.98 $108.78 $46,620 ### -0.0002379 224 $489.50 $109.65 $47,040 ### -0.0002372 -$0.24 226 $489.03 $110.52 $47,460 ### -0.0002366 -$0.24 228 $488.56 $111.39 $47,880 ### -0.0002360 230 $488.09 $112.26 $48,300 ### -0.0002353 -$0.24 232 $487.62 $113.13 $48,720 ### -0.0002347 -$0.23 234 $487.15 $113.99 $49,140 ### -0.0002341 236 $486.68 $114.86 $49,560 ### -0.0002334 -$0.23 238 $486.21 $115.72 $49,980 ### -0.0002328 -$0.23 240 $485.75 $116.58 $50,400 -0.0002322 242 $485.28 $117.44 $50,820 ### -0.0002315 -$0.23 244 $484.82 $118.30 $51,240 -$51,121.70 -0.0002309 -$0.23 246 $484.36 $119.15 $51,660 ### -0.0002303 248 $483.90 $120.01 $52,080 ### -0.0002297 -$0.23 250 $483.44 $120.86 $52,500 ### -0.0002291 -$0.23 252 $482.99 $121.71 $52,920 ### -0.0002284 254 $482.53 $122.56 $53,340 ### -0.0002278 -$0.23 256 $482.07 $123.41 $53,760 ### -0.0002272 -$0.23
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