BA 101 Lecture Notes - Lecture 3: Fixed Asset, Investment, Contribution Margin

• School: University of Oregon
• Department: Charles H. Lundquist College of Business
• Course: BA 101
• Professor: durant

Document Summary

You can assume that half the people who are unaware of your product are actually aware so you only need to invest in the other half. Buyer"s and seller"s market: represents the relationship between supply and demand of a product. If demand is greater than supply, it is a seller"s market. Limited supply occurs due to stock outs, meaning a loss of potential sales. You could sell the product for . 99 above the max and still get sales. There is plenty of product, then it is a buyer"s market. Take the number sold in the low tech segment from last year and increase it by the growth rate. Drawback: only reliable if you do exactly as well as the previous year. Take the total industry unit demand for each segment from last year and increase it by next year"s growth rate. Then look at your potential market for last year and multiply by the first number.