Three leading business magazines X, Y and Z compete for advertising shares in a city with magazine X having 50% market share and its competitors having 25 % market share each. During the past year, the total advertisement revenues put together for all the three magazines was around Rs. 10,00,000 and magazines X has a 15% net profit. Both these figures are expected to remain the same for the next year. There is a business proposal from magazine X as a result of which it expects to retain 80% of its customers and gain 20% customers from magazine Y is expected to retain 70% of its customer and gain 10% each from magazines X and Z. Magazine Z is expected to retain 60% of its customer and gain 10% each from magazines X and Y. If the above-mentioned business development policy costs magazines X Rs. 50,000, do you advise the magazine X to adopt it? Give reasons.

Three leading business magazines X, Y and Z compete for advertising shares in a city with magazine X having 50% market share and its competitors having 25 % market share each. During the past year, the total advertisement revenues put together for all the three magazines was around Rs. 10,00,000 and magazines X has a 15% net profit. Both these figures are expected to remain the same for the next year. There is a business proposal from magazine X as a result of which it expects to retain 80% of its customers and gain 20% customers from magazine Y is expected to retain 70% of its customer and gain 10% each from magazines X and Z. Magazine Z is expected to retain 60% of its customer and gain 10% each from magazines X and Y. If the above-mentioned business development policy costs magazines X Rs. 50,000, do you advise the magazine X to adopt it? Give reasons.

Algebra and Trigonometry (6th Edition)

6th Edition

ISBN:9780134463216

Author:Robert F. Blitzer

Publisher:Robert F. Blitzer

ChapterP: Prerequisites: Fundamental Concepts Of Algebra

Section: Chapter Questions

Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...

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