An article in a trade magazine reports that there are about 5,200 textile factories that use the old-style machine. If the total market is really 5,200 customersnot 5,000 as Texmac originally thoughthow does that affect the replacement quantity estimate? Quantity would change to:

	880 units
	915 units
	1024 units
	2200 units
	2288 units

How would a market size of 5,200 factories affect profit contribution?

	Profit would decrease to $3,380,000.00
	Profit would stay the same
	Profit would increase to $3,660,000.00
	Profit would increase to $5,490,000.00
	Profit would increase to $9,150,000.00

Some of the people who responded to the survey didnt know much about different types of machines. If the actual number of old machines in the market is really 200 per 500 firmsnot 220 as estimated from survey responseshow much would this affect the expected profit contribution (for 5,200 factories)? (Use the answer from b. in your calculation.)

	Profit would decrease by $332,000.00
	Profit would decrease by $3,200,000.00
	Profit would stay the same
	Profit would increase by $328,000.00
	Profit would increase by $8,320,000.00

The marketing manager knows that the percentage of textile factories that would actually buy the new machine might be different from the 40 percent who said they would in the survey. He estimates that the proportion that will replace the old machine might be as low as 36 and as high as 44 percentdepending on business conditions. Using a notebook or a spreadsheet application, prepare a table that shows how expected quantity and profit contribution change when the sample percent varies between a minimum of 36 and a maximum of 44 percent (using intervals of 1%). (Note: Use 5,200 for the number of potential customers and use 220 as the estimate of the number of old machines in the sample.) At what percent does the estimate for total market replacements equal 1007?

	36%
	38%
	40%
	42%
	44%

Using the same scenario as above, at what percent does the estimate for total market contribution equal $3,476,000.00?

	36%
	38%
	40%
	42%
	44%