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Examine the sensitivity of zephyr gross profits

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Reference no: EM132518292

Question 1: Zephyr Chemicals currently holds a 30% share of the market for industrial chemicals. Industry experts estimate the total market in the year 2017 to be $200 million. Zephyr's gross margin is 25%. Examine the sensitivity of Zephyr's gross profits in 2009 to variations in industry growth rates ranging from -2% to 7% (at 1% increments)?

Reference no: EM132518292

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