Team 4
Three Amigos Co.
Sample pages
from report.
Marketing Analysis
Jose Buenrostro
Ray Mensing
Carlos Othon
Product information
• Product:
• Description:
Super video
Video Special Effect system
Objective
• Pricing our product in the national market
for the greatest possible profit
Test Market
Potential national market (K's):
13,000
T es t M a rkets
M arket N umbe r
M a rket Size
Price
Projected
Ye arly Sales
1
2
3
4
1,472,000
1,502,000
765,000
2,943,000
$1,499.95
$1,599.95
$1,699.95
$1,799.95
54,986
52,892
24,681
87,626
5
6
944,000
5,723,000
$1,899.95
$1,999.95
23,174
126,330
Marginal Graphs
• To obtain accurate information about our product.
• In order to graph the marginal revenue and cost,
we needed to get the derivatives of these
functions. This is found with the Difference
Quotient:
f ( x + h) - f ( x - h)
f ¢( x ) @
2×h
Marginal Revenue and Cost
• Marginal cost is the change in total cost after one
more unit of output is produced
• Marginal revenue is an increase in total revenue,
resulting from a sale of another unit
• Maximum profit
Marginal Cost = Marginal Revenue
Marginal Revenue and Cost
M a rg i n a l R even u e a n d C o st
$2,350
MR(q)
$ P er Driv e
$1,850
MC (q)
$1,350
$850
$350
-$150
0
100
200
300
400
500
q (K 's)
600
700
800
900
Marginal Profit
• Marginal profit illustrates the first change in
variable costs
M a rg i n a l P ro fi t
MP (q ) $ P er Driv e
$640
$540
$440
$340
$240
$140
$40
-$60
0
50
100
150
200
q (K 's)
250
300
350
400
Future Investment Plan
• Obtain a loan of 15 million with an interest rate of
10% payable in one year
• Buy advanced equipment that would decrease
variable cost by 7%
• The total profit will increase by $30.591 million
• After paying the loan and the interest rate the net
increase in profit of the investment will be
$14.091 million
Future Investment Plan
P ro fi t Fu n c t i on
P (q ) (M's )
$1 35
$1 05
$ 75
$ 45
$ 15
-$ 15
0
1 00
2 00
3 00
4 00
5 00
30 0
40 0
50 0
q (K 's )
P r ofi t F u n c ti o n
$ 13 5
P (q ) (M's)
$ 10 5
$7 5
$4 5
$1 5
- $1 5 0
10 0
20 0
q ( K 's)
Final Price
» $1,999.95 dollars
• It would have a positive psychological impact on
the customer that could possibly increase sales,
therefore increasing profit