economics

You’re the manager of global opportunities for a U.S. manufacturer, who is considering expanding sales into Europe. Your market research has identified 3 potential market opportunities: England, France, and Germany. If you enter the English market, you have a 0.5 chance of big success (selling 100,000 units at a per-unit profit of $8), a 0.3 chance of moderate success (selling 60,000 units at a per-unit profit of $6), and a 0.2 chance of failure (sell nothing). If you enter the French market, you have a 0.4 chance of big success (selling 120,000 units at a per-unit profit of $9), a 0.4 chance of moderate success (selling 50,000 units at a per-unit profit of $6), and a 0.2 chance of failure (sell nothing). If you enter the German market, you have a 0.2 chance of huge success (selling 150,000 units at a per-unit profit of $10), a 0.5 chance of moderate success (selling 70,000 units at a per-unit profit of $6), and a 0.3 chance of failure (selling nothing). If you can enter only one market, and the cost of entering the market (regardless of which market you select) is $250,000, should you enter one of the European markets? If so, which one? If you enter, what is your potential profit?

  1. 0
  2. 4
asked by Anonymous

Respond to this Question

First Name

Your Response

Similar Questions

  1. Managerial Economics

    You’re the manager of global opportunities for a U.S. manufacturer, who is considering expanding sales into Europe. Your market research has identified three potential market opportunities: England, France, and Germany. If you
  2. statistics

    A manager wishes to determine the relationship between the number of miles (in hundreds of miles) the manager's sales representatives travel per month and the amount of sales (in thousands of dollars) per month. Find the equation
  3. management of international business

    1)what are the main changes in this current global market? 2) how do you define a global manager?
  4. marketing

    You are the national sales manager of an industrial packaging equipment manager. Four sales people (assigned to each geographic area) report to you. Discuss the various evaluation tools you would employ to assess their performance
  5. college algebra

    You apply for a job selling diet marshmallows because an ad says that the average company employee earns $50,000 a year. Later you discover that the company has a president, a sales manager, and 30 salespeople; you also learn that
  6. accounting

    This table is used to calculate annual commissions and salaries for car salespeople. What would the total yearly earnings of a sales assistant be who has $90,000 in sales? Commission & Salaries Sales Assistant-Base Salary-$10,000
  7. business communication

    Which of the following best describes these sentences from a congratulations message? Heartiest congratulations on being named plant manager of Maxell Industries. I am certain that you richly deserve this promotion, and I am sure
  8. percentages

    This table is used to calculate annual commissions and salaries for car salespeople. What would the total yearly earnings of a sales assistant be who has $90,000 in sales? Commission & Salaries- Sales Assistant-Base Salary-$10,000
  9. Statistics

    A manufacturer makes two models of an item: model I, which accounts for 80% of unit sales, and model II, which accounts for 20% of unit sales. Because of defects, the manufacturer has to replace (or exchange) 10% of its model I
  10. graphing quadratic equations

    Suppose you are an event coordinator for a large performance theater. One of the hottest new Broadway musicals has started to tour and your city is the first stop on the tour. You need to supply information about projected ticket

More Similar Questions