Question

HELP!!! Marketing

1. Suppose the average price for a new disposable cell phone is $20, and the total market potential for that product is $4 million. Topco, Inc. has a planned market share of 10 percent. How many phones does Topco have the potential to sell in this market?

ANSWER: 20,000

2. Use the data from question 3 to calculate Topco, Inc.'s planned market share in dollars.

ANSWER: $400,000

3. Atlantic Car Rental charges $29.95 per day to rent a mid-size automobile. Pacific Car Rental, Atlantic's main competitor, just reduced prices on all its car rentals. In response, Atlantic reduced its prices by 5 percent. Now how much does it cost to rent a mid-size automobile from Atlantic?

ANSWER: $28.45

Answer 1

1. ANSWER: 20,000

2. ANSWER: $400,000

3. ANSWER: $28.45

Step-by-step explanation:

1. If the average price for a new disposable cell phone is $20, and the total market potential for that product is $4 million;and Topco, Inc. has a planned market share of 10 percent. Then, Topco have the potential to sell in this market 10% * $4 million / $20 = 20,000 units of the proposed cell phone.

2. The planned market share in dollars is 10% * $4 million = $400,000

3. If Atlantic Car Rental charges $29.95 per day to rent a mid-size automobile. Pacific Car Rental, Atlantic's main competitor, just reduced prices on all its car rentals. In response, Atlantic reduced its prices by 5 percent.

Now Atlantic's new cost of rental for mid-size cars is: 95% of $29.95 = $28.45