Dunder Mifflin, of Scranton, PA, is the leading manufacturer of office furniture and related items. Their products are made from solid wood, veneer, metal, and laminate. Dunder Mifflin is introducing a new line called The Dwight.  The U.S. overall furniture market is estimated to be $24,813,556,000.  Office furniture is 39% of all U.S. furniture sales.  The office furniture category is composed of four distinct segments:            (1) Non-solid wood – 29%; (2) Solid wood – 43%; (3) Metal – 18%; (4) Laminate – 10%.     Sales of solid wood office furniture at the retail level are as follows: (1) Department stores – 22%; (2) Chain furniture stores – 40%;          (3) Independent furniture stores – 17%; (4) Mass merchandisers – 8%; (5) Unfinished furniture stores – 9%; (6) Online – 4%.     (a)    If Dunder Mifflin elects to distribute The Dwight line through independent furniture stores and department stores, what is the relevant market?     $1,975600,556     $2,509,282,886     $1,622,881,003     $2,234,654,897

Practical Management Science
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Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
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Dunder Mifflin, of Scranton, PA, is the leading manufacturer of office furniture and related items. Their products are made from solid wood, veneer, metal, and laminate. Dunder Mifflin is introducing a new line called The Dwight.  The U.S. overall furniture market is estimated to be $24,813,556,000.  Office furniture is 39% of all U.S. furniture sales.  The office furniture category is composed of four distinct segments:  

         (1) Non-solid wood – 29%; (2) Solid wood – 43%; (3) Metal – 18%; (4) Laminate – 10%.    

Sales of solid wood office furniture at the retail level are as follows: (1) Department stores – 22%; (2) Chain furniture stores – 40%;

         (3) Independent furniture stores – 17%; (4) Mass merchandisers – 8%; (5) Unfinished furniture stores – 9%; (6) Online – 4%.  

 

(a)    If Dunder Mifflin elects to distribute The Dwight line through independent furniture stores and department stores, what is the relevant market?

   

$1,975600,556

   

$2,509,282,886

   

$1,622,881,003

   

$2,234,654,897

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