Question: For the product launch decision of Exercise 12 the economy

For the product launch decision of Exercise 12, the economy isn’t looking that good. Your very cautious boss says that he thinks there’s a 60% chance of low sales, and a 30% chance of moderate sales. Which course should the company follow?
In exercise A small company has the technology to develop a new personal data assistant (PDA), but it worries about sales in the crowded market. They estimate that it will cost $600,000 to develop, launch, and market the product. Analysts have produced revenue estimates for three scenarios: If sales are high, they will sell $1.2M worth of the phones; if sales are moderate, they will sell $800,000 worth; and if sales are low, they will sell only $300,000 worth.

View Solution:


Sale on SolutionInn
Sales0
Views69
Comments
  • CreatedMay 15, 2015
  • Files Included
Post your question
5000