Question
3. A camera brand is releasing a new model for the flagship DSLR camera. The brand is planning on selling the camera through retail stores,
3. A camera brand is releasing a new model for the flagship DSLR camera. The brand is planning on selling the camera through retail stores, but they also want to push their direct sales through their website, since they will make more money selling at the higher retail price compared to the wholesale price that stores purchase the cameras for. To do facilitate this, the brand spent $50,000 redesigning their web store and plan to spend $100,000 on advertising for the camera and web store. The brand set a suggested retail price of $750 for the camera. Additionally, each camera costs $450 to manufacture. The brand conducted some market research which suggested they can expect to sell about 40,000 units worldwide through all sales outlets. Their goal is to sell 10% of those units direct-to-consumer through their web store. Assuming they meet their goals, how much profit can the brand expect to earn through web store sales?
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