Calculate the Total Sales of a Product If the Market

question 4

Multiple Choice

Calculate the total sales of a product if the market demand for the product now in the early growth stage of the product life cycle is 2 million units annually,and the product captures 15 percent of this demand with a price of $50 per unit.

• A)$100 million
• B)$15 million
• C)$30 million
• D)$50 million
• E)$75 million

---

Definitions:

Purchasing Capability

A measure of the ability of an individual or organization to buy goods or services, based on financial resources.

Lower-Income Households

Families or individuals with income levels significantly below the median for their geographical area.

Middle-Income Households

Families or households with income levels that fall in the middle of the national income distribution, typically encompassing those who can afford a comfortable lifestyle without being considered wealthy.

Currency Fluctuation

The variation in the exchange rate of one currency against another, affecting international trade, investment, and economics.