Question

1) Salam is thinking about opening a lunchtime restaurant on a busy street. Salam estimates that all the restaurants on this street together serve 18,398 lunches on a typical day. Opening the new lunchtime restaurant will require $6,928 in fixed costs. Salam believes that he can earn a margin of $4.44 on each lunch his new restaurant serves. Calculate breakeven MARKET SHARE for Salam's new restaurant. Report your answer as a percent. Report 25.5%, for example, as "25.5". Rounding: tenth of a percent.

2) Nguyen Electronics wants to add solid state whoozits (SSW's) to its product line. Adding SSW's to its product line will require spending $2,016,579 in fixed costs. Nguyen plans to sell SSW's for $411 each, and estimates variable costs at $146 per unit. The total market for SSW's is worth $54,443,794. Calculate breakeven MARKET SHARE for Nguyen Electronics' SSW venture. Report answer as a percent. Report 22.5%, for example, as "22.5". Rounding: tenth of a percent.

3) Under pressure from its board of directors, management at Roadside is planning to enter the conventional battery-powered flashlight market. Roadside expects to sell this boring product to wholesalers for $16.45 per unit. Relevant fixed costs will total $371,992, and variable costs to make this product will be $14.51 per unit. Background research estimates the size of the market for conventional flashlights at 1.8 million units per year. If sales of this unit reach breakeven, what market share will Roadside have? Report your answer as a percent. Report 27.5%, for example, as "27.5". Rounding: tenth of a percent.

Answer 1

1.
=6928/4.44*1/18398=8.48114121295989%

2.
=2016579/(411-146)*1/54443794=0.0139772258991938%

3.
=371992/(16.45-14.51)*1/(1.8*10^6)=10.6526918671249%