Should you invest in new product if so how must you price

Reference no: EM13390326

You are considering an investment that will enable you to produce a new product. Your market research has indicated that the probability that the new product will be extremely successful is .6 and the probability that it will only be moderately successful is .4. The estimated demand curve if the product is extremely successful indicates 100 units per week at a price of $10 and 300 units per week at a price of $8. If it is only moderately successful your demand curve indicates 50 units per week at a price of $10 and 70 units per week at a price of $8. Your fixed costs are $200 per week and your marginal costs are constant at $5 in this production range. Should you invest in the new product? If so, how should you price? What quantity do you expect to sell at that price? What is the expected profit?

Reference no: EM13390326

Questions Cloud

What price should you charge to second group what are the : you have 10 individuals with values 1 2 3 4 5 6 7 8 9 10 and suppose you find a way to charge one price to the

Select a publicly traded organization of your choice use : select a publicly traded organization of your choice. use the internet to find financial information about your

Find the expected profit for each price should you make : you are considering an investment that will enable you to produce a new product. your market research has indicated

Based on your real personal experience explain a specific : based on your actual personal experience describe a specific service encounter in which you were very dissatisfied.

Should you invest in new product if so how must you price : you are considering an investment that will enable you to produce a new product. your market research has indicated

You will create a complete marketing plan by the end of the : you are the new marketing manager to the waters bottling company wbc of munsonville nh. they have never done any

Did the labor productivity ratio increase decrease or : the abc company has a large order for special uniforms to be used in an urgent operation. working the normal two shifts

The malbim company uses a process costing system materials : complete the following exercise. provide your answers in an msword document or as an excel spreadsheet with each

Suppose no transactions costs and competitive market find : suppose there are 9 sellers and 9 buyers in a market each willing to buy or sell one unit of a good. their values are

User Account

All Pages