As the VP of International Marketing, you are trying to estimate the sales your company might achieve with its entry into a new market. Using the data provided:

 

·     # of competitors 4

·     total # of competitor's products 4 (one each)

·     total # of competitor's salespeople 20

·     total advertising and promotional expenditures last year by all competitors $5 MM

·     average competitor price/unit $800

·     size of market in units last year 100,000

·     annual market growth rate 20%

·     # of your company salespeople 2

·     your company promotional budget for product launch $1 million

·     your price/unit $700

·     your profit margin per unit $280

·     Annual cost of a salesperson $250,000

 

Estimate what you might reasonably expect to sell in units and dollars the first year. Explain how you arrived at your answer including any assumptions you made.