contestada

Assume that the drug passed FDA approval process. Suppose that the market size is 30 mil., market share is 30%, production and advertising costs are $50 mil. What is the profit on this drug in millions (ignore the R&D costs that have already been incurred)?

Respuesta :

Parrain

Based on the revenue per customer, the market share, and the production and advertising costs, the profit on this drug is $58 million .

How much profit does the drug bring in?

First find the number of customers the company will sell to:

= 30 million x 30% market share

= 9 million people

The profit is:

= (Number of customers sold to x revenue per customer) - production and advertising costs

= (9 million x 12) - 50 million

= $58 million

Relevant part of the question is:

Revenue per customer is expected to be $12. Production and advertising costs run between $20 and $70 million with $50 million the most likely amount (triangular distribution seems appropriate).

Find out more on expected profits at https://brainly.com/question/4177260.

#SPJ1

Otras preguntas