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2 73 100% M 1. (10 marks) Your company has invented a new mixer drink to be mixed with spirits such as vodka or gin

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2 73 100% M 1. (10 marks) Your company has invented a new mixer drink to be mixed with spirits such as vodka or gin as a kind of cocktail, but sold to the home market. You have been asked to estimate how much the company should produce of this drink on the assumption that it will be a success compared to rival products. You do lots of complex modelling using all the available and relevant market data and come up with an estimate of 10,000 litres per month for the Australian market. Use Fermi Estimation techniques to determine whether this is a reasonable estimate. Provide some justification of all the steps and assumptions you make in coming to your conclusion. Highlight any assumptions that might be debatable where they significantly affect your result. (Try to look up as few quantities as possible in answering this question the method is of more interest than the figure you end up with) 2 73 100% M 1. (10 marks) Your company has invented a new mixer drink to be mixed with spirits such as vodka or gin as a kind of cocktail, but sold to the home market. You have been asked to estimate how much the company should produce of this drink on the assumption that it will be a success compared to rival products. You do lots of complex modelling using all the available and relevant market data and come up with an estimate of 10,000 litres per month for the Australian market. Use Fermi Estimation techniques to determine whether this is a reasonable estimate. Provide some justification of all the steps and assumptions you make in coming to your conclusion. Highlight any assumptions that might be debatable where they significantly affect your result. (Try to look up as few quantities as possible in answering this question the method is of more interest than the figure you end up with)

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