enter this market, you must invest $2,000,000 on initial advertising. After investing in the advertising, the amount of ...

Get help with any kind of assignment - from a high school essay to a PhD dissertation

  1. Order Custom Essay, Course Work, Research and Term Papers

enter this market, you must invest $2,000,000 on initial

April 14, 2018

enter this market, you must invest $2,000,000 on initial advertising. After investing in the advertising, the amount of product you actually sell will depend on the level of demand for your product. If the “high” level of demand is realized, then the “operating profit” (revenues less operating cost) will be $2,800,000. If the “medium” or “low” demand levels are realized, your “profit” will be $2,000,000 and $1,000,000 respectively. These profit estimates do not account for the initial advertising expenditure. The probably of each of these three demand levels being realized is low (35%), medium (30%) and high (35%).


a. Outline the above-described situation as a decision-tree. Using the EMV criterion, solve the tree and lay out a recommendation for the company? Draw and solve decision tree below. Write recommendation below and on answer sheet.










b. Assume that you discover that your estimate of the profit from selling the new product if demand is “high” was too low. How much would the revenue for “high demand” have to rise in order for you to change your decision? Circle your final answer and put in blank on answer sheet. Show your work.



C. alternatively, assume that you are able to purchase dome marketing research that would tell you upfront what the level of demand would be. What is the most you would be willing to pay for this information? Show your work










OUR SERVICE CHARTER






  • Professional Academic Writers

    An academic degree is one of the qualifications that our writers hold. This is only a minimum requirement that we ask from our writers, but the team also has writers who possess higher educational credentials. It means that the team comprises of competent writers who have gone through institutions of higher learning and passed their exams. Subsequently, the writers have a good grasp of what our clients require. It is notable that our writers not only want to apply their acquired knowledge, but they are also willing to help our clients to outperform them. This is a clear indication of a team that is willing to walk an extra mile. We uphold professionalism in our operations, and our clients should look forward to receive services from a team of experts. It is the spirit of value addition that makes us to scale any heights in order to deliver and outperform our clients’ expectations.

  • Excellent Quality Work

    Grammar is one of the elements that we take seriously in our service delivery. Beside the use of spell checkers, we progressively take our writers through the essentials of a quality paper that features information clarity. Importantly, we encourage our writers to avoid coming up with a paper that deviates from the elements that appear on the client’s instruction brief. It means that the papers that we deliver denote well researched information that is rich in details. Additionally, the papers usually contain exhaustive details on any instruction that a client submitted. It is the tireless application of our writers’ efforts that makes us stand out when it comes to the delivery of excellent quality work. Notably, our writers use quality resources when digging up information that a paper requires. They are usually aware of the sources that contain rich information. Our past clients have proved that we give nothing short of quality work through giving us a positive feedback.

  • 24/7 Customer Support

    Our team of writers prides in high-level competence. The writers have the required expertise that enables them to deliver quality papers that match with the requirements of the grading rubric. In the absence of the rubric, we ensure that the writers follow the clients’ instruction brief to the letter. We can confidently assure our clients to expect nothing short of a pass from the papers that we deliver. Importantly, we have qualified writers who handle different areas of study. This diversification enables us to allot clients’ orders to the writer who is well seasoned in the subject area of study. It also enables the team to become more professional due to specialization. Our clients should put their trust in our service delivery and expect to successfully attain high grades at all times. The fact that we offer free revision reflects our dedication in delivering high quality papers that match with our clients’ expectations.

  • Free Revisions

    The papers that we deliver usually reflect a high quality level. However, there is always a room for any additional fine-tuning touch in line with a client’s preference without any additional charges. To begin with, a client has discretion to make a choice on their preferred top writer from our team. Such a writer could have handled past work for the client and received a positive review from the same. It means that the client has confidence of the quality of service that the writer delivers. Secondly, a client has an option of making use of our editing services. Our editors are always on standby to revise the paper and ensure that it matches with the expectations of a client that the instruction brief had detailed. The revision covers content adjustment that removes off-topic details, addition of sources, removal of language style errors, and assessment of the referencing style in order to enhance compliance.




Related Questions