190↑1. Individual Problems 17-1PhilippinesYou're the manager of global opportunities for a U.S. manufacturer that is considering expanding sales into Asia. Your market research has identifiedthe market potential in Malaysia, the Philippines, and Singapore as described in the following table:MalaysiaProbabilityUnitsPhilippinesProbabilityUnitsSingaporeProbabilityUnitsBig0.31,300,000O PhilippinesO SingaporeO MalaysiaSuccess Level0.71,100,0000.5600,000Mediocre0.3650,0000.1352,0000.3360,000Failure0.400.200.20The product sells for $30, and each unit has a constant marginal cost of $24. Assume that the (fixed) cost of entering the market (regardless of whichmarket you select) is $750,000.In the following table, enter the expected number of units sold, and the expected profit, from entering each market.Market Expected Number of Units SoldExpected ProfitMalaysiaPhilippinesSingapore$$If you were to enter one of the previously described markets, which one would you enter in order to earn the highest expected profit?

The expected profit is calculated by multiplying the probability of profit and the value of profit.…

Philippines You're the manager of global opportunities for a U.S. manufacturer that is considering expanding sales into Asia. Your market research has identified the market potential in Malaysia, the Philippines, and Singapore as described in the following table: Malaysia Probability Units Philippines Probability Units Singapore Probability Units Big 0.3 O Philippines O Singapore Success Level Mediocre O Malaysia 1,300,000 0.7 1,100,000 0.3 650,000 0.1 352,000 0.5 0.3 600,000 360,000 Failure 0.4 0 0.2 0 0.2 0 The product sells for $30, and each unit has a constant marginal cost of $24. Assume that the (fixed) cost of entering the market (regardless of which market you select) is $750,000. In the following table, enter the expected number of units sold, and the expected profit, from entering each market. Market Expected Number of Units Sold Expected Profit Malaysia Philippines Singapore 4 S S S If you were to enter one of the previously described markets, which one would you enter in order to earn the highest expected profit?

Philippines You're the manager of global opportunities for a U.S. manufacturer that is considering expanding sales into Asia. Your market research has identified the market potential in Malaysia, the Philippines, and Singapore as described in the following table: Malaysia Probability Units Philippines Probability Units Singapore Probability Units Big 0.3 O Philippines O Singapore Success Level Mediocre O Malaysia 1,300,000 0.7 1,100,000 0.3 650,000 0.1 352,000 0.5 0.3 600,000 360,000 Failure 0.4 0 0.2 0 0.2 0 The product sells for $30, and each unit has a constant marginal cost of $24. Assume that the (fixed) cost of entering the market (regardless of which market you select) is $750,000. In the following table, enter the expected number of units sold, and the expected profit, from entering each market. Market Expected Number of Units Sold Expected Profit Malaysia Philippines Singapore 4 S S S If you were to enter one of the previously described markets, which one would you enter in order to earn the highest expected profit?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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