project1groups1

project1groups1 - TEST MARKET AND PRODUCTION COST DATA...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
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
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Group 1 Potential national market: 120,0 0,0 0 Test Markets Market Size Price 1 3,920,0 0 $215.0 51,4 50 1,575 2 4 ,50 ,0 0 $265.0 51,60 1,376 3 1,610,0 0 $296.0 16,127 1,202 4 4 ,9 0,0 0 $306.0 4 5,950 1,105 5 2,4 80,0 0 $353.0 18,5 9 898 6 1,4 10,0 0 $365.0 9,78 83 7 3,080,0 0 $4 10.0 14 ,091 54 9 8 4 ,270,0 0 $4 0.0 15,4 08 4 3 Fixed Cost For The Year: $2,50 ,0 0 Variable Costs Quantity Cost per unit First 90 ,0 0 $210 Next 60 ,0 0 $120 Further: $50 q 0 $5 1.3 $0.0 $0 $0.0 -0.0 03178 -$0.32 2 $5 0.70 $1.10 $4 20 -$4 18.90 -0.0 03170 -$0.32 4 $5 0.06 $2.20 $84 0 -$837.80 -0.0 03162 6 $54 9.4 3 $3.30 $1,260 -$1,256.70 -0.0 03154 -$0.32 8 $54 8.80 $4 .39 $1,680 -$1,675.61 -0.0 0314 6 -$0.31 10 $54 8.17 $5.4 8 $2,10 -$2,094 .52 -0.0 03138 12 $54 7.5 $6.57 $2,520 -$2,513.4 3 -0.0 03130 -$0.31 a -0.0 0 0 06 14 $54 6.92 $7.6 $2,94 0 -$2,932.34 -0.0 0312 -$0.31 b 0.0 02 16 $54 6.30 $8.74 $3,360 -$3,351.26 -0.0 031 4 c -0.3178 18 $54 5.67 $9.82 $3,780 -$3,7 0.18 -0.0 03107 -$0.31 d 5 1.3 20 $54 5.05 $10.90 $4 ,20 -$4 ,189.10 -0.0 0309 -$0.31 2 $54 .4 3 $1 .98 $4 ,620 -$4 ,608.02 -0.0 03091 24 $54 3.82 $13.05 $5,04 0 -$5,026.95 -0.0 03083 -$0.31 26 $54 3.20 $14 .12 $5,4 60 -$5,4 5.8 -0.0 03075 -$0.31 28 $54 2.59 $15.19 $5,8 0 -$5,864 .81 -0.0 03067 30 $54 1.97 $16.26 $6,30 -$6,283.74 -0.0 03060 -$0.31 32 $54 1.36 $17.32 $6,720 -$6,702.68 -0.0 03052 -$0.31 34 $54 0.75 $18.39 $7,14 0 -$7,121.61 -0.0 0304 -$0.30 36 $54 0.15 $19.4 5 $7,560 -$7,54 0.5 -0.0 03036 -$0.30 38 $539.54 $20.50 $7,980 -$7,959.50 -0.0 03029 -$0.30 4 0 $538.93 $21.56 $8,4 0 -$8,378.4 -0.0 03021 4 2 $538.3 $2 .61 $8,820 -$8,797.39 -0.0 03013 -$0.30 4 $537.73 $23.6 $9,24 0 -$9,216.34 -0.0 030 5 -$0.30 4 6 $537.13 $24 .71 $9,6 0 -$9,635.29 -0.0 029 8 4 8 $536.53 $25.75 $10,080 # # -0.0 029 0 -$0.30 50 $535.93 $26.80 $10,50 # # -0.0 02983 -$0.30 52 $535.34 $27.84 $10,920 # # -0.0 02975 54 $534 .74 $28.8 $1 ,34 0 -$1 ,31 .12 -0.0 02967 -$0.30 56 $534 .15 $29.91 $1 ,760 # # -0.0 02960 -$0.30 58 $53 .56 $30.95 $12,180 # # -0.0 02952 60 $532.97 $31.98 $12,60 # # -0.0 0294 -$0.29 62 $532.38 $3 .01 $13,020 # # -0.0 02937 -$0.29 64 $531.79 $34 .03 $13,4 0 -0.0 02929 6 $531.21 $35.06 $13,860 # # -0.0 0292 -$0.29 68 $530.63 $36.08 $14 ,280 # # -0.0 02914 -$0.29 70 $530.04 $37.10 $14 ,70 # # -0.0 02907 1,0 0 $373.53 72 $529.4 6 $38.12 $15,120 # # -0.0 0289 -$0.29 74 $528.8 $39.14 $15,54 0 # # -0.0 02892 -$0.29 76 $528.31 $4 0.15 $15,960 # # -0.0 028 4 78 $527.73 $4 1.16 $16,380 # # -0.0 0287 -$0.29 80 $527.16 $4 2.17 $16,80 # # -0.0 02870 82 $526.58 $4 3.18 $17,2 0 # # -0.0 02862 -$0.29 84 $526.01 $4 .18 $17,64 0 # # -0.0 0285 -$0.29 86 $525.4 $4 5.19 $18,060 # # -0.0 0284 7 -$0.28 8 $524 .87 $4 6.19 $18,4 80 # # -0.0 0284 0 -$0.28 90 $524 .30 $4 7.19 $18,90 # # -0.0 0283 -$0.28 92 $523.74 $4 8.18 $19,320 -$19,271.82 -0.0 02825 94 $523.17 $4 9.18 $19,74 0 # # -0.0 02818 -$0.28 96 $52 .61 $50.17 $20,160 # # -0.0 0281 -$0.28 98 $52 .05 $51.16 $20,580 -0.0 02803 10 $521.4 9 $52.15 $21,0 0 # # -0.0 02796 -$0.28 102 $520.93 $53.14 $21,4 20 # # -0.0 02789 -$0.28 104 $520.37 $54 .12 $21,84 0 # # -0.0 02781 106 $519.82 $5 .10 $2 ,260 # # -0.0 027 4 -$0.28 108 $519.26 $56.08 $2 ,680 -$2 ,623.92 -0.0 02767 -$0.28 1,0 0 $373.53 $373.53 1 0 $518.71 $57.06 $23,10 # # -0.0 02760 1 2 $518.16 $58.03 $23,520 # # -0.0 02753 -$0.28 1 4 $517.61 $59.01 $23,94 0 # # -0.0 0274 5 -$0.27 1 6 $517.06 $59.98 $24 ,360 # # -0.0 02738 1 8 $516.52 $60.95 $24 ,780 # # -0.0 02731 -$0.27 120 $515.97 $61.92 $25,20 # # -0.0 02724 -$0.27 12 $515.4 3 $62.8 $25,620 # # -0.0 02717 124 $514 .8 $63.85 $26,04 0 # # -0.0 02710 -$0.27 126 $514 .34 $64 .81 $26,4 60 # # -0.0 02703 -$0.27 128 $513.80 $65.7 $26,8 0 # # -0.0 02695 130 $513.26 $6 .72 $27,30 -$27,23 .28 -0.0 0268 -$0.27 132 $512.73 $67.68 $27,720 -$27,652.32 -0.0 02681 -$0.27 134 $512.19 $68.63 $28,14 0 # # -0.0 02674 136 $51 .6 $69.59 $28,560 # # -0.0 026 7 -$0.27 138 $51 .12 $70.54 $28,980 # # -0.0 026 0 -$0.27 14 0 $510.59 $71.4 8 $29,4 0 -$29,328.52 -0.0 02653 14 2 $510.06 $72.4 3 $29,820 # # -0.0 0264 6 -$0.26 14 $509.53 $73.37 $30,24 0 # # -0.0 02639 -$0.26 14 6 $509.01 $74 .32 $30,6 0 -0.0 02632 14 8 $508.4 8 $75.26 $31,080 # # -0.0 02625 -$0.26 150 $507.96 $76.19 $31,50 -$31,4 23.81 -0.0 02619 -$0.26 152 $507.4 3 $7 .13 $31,920 # # -0.0 02612 154 $506.91 $78.06 $32,34 0 # # -0.0 02605 -$0.26 156 $506.39 $79.0 $32,760 # # -0.0 02598 -$0.26 158 $505.87 $79.93 $3 ,180 # # -0.0 02591 160 $505.36 $80.86 $3 ,60 # # -0.0 02584 -$0.26 162 $504 .84 $81.78 $34 ,020 -$3 ,938.2 -0.0 0257 -$0.26
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 2

project1groups1 - TEST MARKET AND PRODUCTION COST DATA...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online