# Marketing

posted by .

A) The total market for high density TV’s is estimated to be 600,000 units. Product development and marketing costs for market entry are \$30,000,000. The marketing department anticipates a selling price of \$2,000 and a variable cost of \$1,500. What market share would the company have to obtain in order to make a \$1,000,000 profit on the project? (Looking for answer as a percentage)

B) Your company, Bozo Industries, sold a telephone system to a company in Great Britain on June 1, 2009. The agreed upon price was \$2,000,000. The exchange rate as of June 1 is one pound = \$1.7883. The British have agreed to pay 1,118,381 pounds in early Dec. 2009, the delivery date for the phone system. Who is bearing the exchange rate risk in this transaction? Look up the rate today (assume it is the delivery date) and compute how much exchange rate gain or loss will there be?

For B the British Pound to U.S. dollar is 1.6198 as of today the 9th. I took the exchange rate of \$1.7883 and subtracted from the current exchange rate of 1.6198 which equaled .1685. I than multiplied .1685 by 2,000,000 and got \$337,000. So the U.S company lost \$337,000 for this transaction. Is my work correct?

• Marketing -

B is correct.

A) profit-cost=1,000,000
500n-30,000,000=1,000,000
n= 62,000
check that.

percent of market: 62,000/600,000 x 100

## Similar Questions

1. ### Economics

A fishing boat owner brings 50,000 fish to market and the market price is \$4 per fish. Her average variable cost of 50,000 fish is \$1 and the fixed cost of the boat is \$100,000, what is her profit per fish?
2. ### Marketing

Explain why fixed and variable costs per unit decline as sales volume increases. Suppose a company had a variable cost/unit of \$20 at a cumulative volume of 20,000 units. What would be their approximate variable cost per unit when …
3. ### accounting

"Harris Company manufactures and sells a single product. A partically completed schedule of the company's total and per unit cost over the relevant range of 30,000 to 50,000 per units produced and sold are: United produced and Sold: …
4. ### Marketing

A manufacturer of AC units realizes a cost of \$55.00 for every unit produced. Its total fixed cost is \$2,000,000. If the manufacturer produces 500,000 units, calculate its: a. unit cost b. markup price if it desires a 10% returns on …
5. ### Managerial Economics

You are considering setting up a software development business. To set up the enterprise you will need to buy equipment costing \$100,000. This equipment will be depreciated straight line over 5 years to a zero salvage value. Its market …
6. ### Math

The Oliver Company plans to market a new product. Based on its market studies, Oliver estimates that it can sell up to 2,000 units in 2005. The selling price will be \$5 per unit. Variable costs are estimated to be 20% of total revenue. …