Question

Out of 2,700 office workers in a marketing research study, 953 preferred a new computer printer ink cartridge. The estimated market size is 1,700,000. An office worker uses about 42 ink cartridges each year. What is the annual sales potential rounded to the nearest hundred thousand?

Answer 1

To find the annual sales potential, calculate the proportion of office workers who prefer the new ink cartridge, then calculate the estimated number of office workers who use ink cartridges in a year, and finally multiply this by the average number of ink cartridges used per year. Rounded to the nearest hundred thousand, the annual sales potential is 40,000.

Step-by-step explanation:

To find the annual sales potential, we first need to calculate the number of office workers who prefer the new ink cartridge. Out of 2,700 office workers, 953 preferred the new ink cartridge. So, we can calculate the proportion of office workers who prefer the new ink cartridge as follows:

Proportion = Preferred/Total
= 953/2700
≈ 0.353

Next, we can calculate the estimated number of office workers who use ink cartridges in a year:

Number of office workers using ink cartridges = Proportion x Number of office workers
= 0.353 x 2700
≈ 954

Finally, we can calculate the annual sales potential by multiplying the number of office workers using ink cartridges by the average number of ink cartridges used per year:

Annual sales potential = Number of office workers using ink cartridges x Average number of ink cartridges used per year
= 954 x 42
≈ 40,068

Rounded to the nearest hundred thousand, the annual sales potential is 40,000.