Reference no: EM133039047

Question - The Wankel Publishing Company is planning to start a new magazine devoted to girls' high school basketball. The company has the following information. According to census data, one of the states where it wisl1es to introduce the magazine has a population of 1 million girls aged thirteen to eighteen years. A national study found that 42 percent of high school girls compete in sports, and the High School League Annual Report suggests that 20 percent of high school girl athletes play basketball. Wankel Publishing has found, through past experience in specialty magazines, that it can have monopoly status in a market for at most three years (100 percent market share). Under a best-case scenario, it plans to have 4 percent market penetration in year 1, 8 percent in year 2, and 12 percent in year 3.

What will be the number of subscribers over the next three years under a worst-case scenario? Assume that the worst-case scenario has a penetration rate of 1 percent in year 1, 2 percent in year 2, and 3 percent in year 3.