You're the manager of global opportunities for a U.S. manufacturer that is considering expanding sales into Asia. Your market research has identifie the market potential in Malaysia, the Philippines, and Singapore as described in the following table: Success Level Big Mediocre Failure Malaysia Probability 0.5 0.3 0.2 Units 500,000 300,000 Philippines Probability 0.2 0.7 0.1 Units 1,400,000 700,000 Singapore Probability 0.3 0.3 0.4 Units 1,200,000 384,000 The product sells for $10, and each unit has a constant marginal cost of $8. Assume that the (fixed) cost of entering the market (regardless of whic market you select) is $250,000. 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 24 Philippines $ Singapore

You're the manager of global opportunities for a U.S. manufacturer that is considering expanding sales into Asia. Your market research has identifie the market potential in Malaysia, the Philippines, and Singapore as described in the following table: Success Level Big Mediocre Failure Malaysia Probability 0.5 0.3 0.2 Units 500,000 300,000 Philippines Probability 0.2 0.7 0.1 Units 1,400,000 700,000 Singapore Probability 0.3 0.3 0.4 Units 1,200,000 384,000 The product sells for $10, and each unit has a constant marginal cost of $8. Assume that the (fixed) cost of entering the market (regardless of whic market you select) is $250,000. 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 24 Philippines $ Singapore

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. Individual Problems 17-1 Malaysia 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: Success Level Big Mediocre Failure Malaysia Probability 0.7 0.1 0.2 Units 1,300,000 416,000 0 Philippines Probability 0.2 0.3 0.5 Units 600,000 360,000 0 Singapore Probability 0.4 0.3 0.3 Units 1,500,000 750,000 0 The product sells for $20, and each unit has a constant marginal cost of $16. Assume that the (fixed) cost of entering the market (regardless of which market you select) is $500,000. 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…
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