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At the photo Given the following facts, you are required to compute the market size for the cigarettes industry in Malaysia in terms of volume
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Given the following facts, you are required to compute the market size for the cigarettes industry in Malaysia in terms of volume (sticks) and its retail value (RM million): [8 marks) 0 Number of Malaysian smokers: 5 million (ii) Average number of sticks smoked per day: 12 (ii) Average manufacturer's selling price per pack of 20 sticks: RM 15 (iv) Average retailer's selling price per pack of 20 sticks: RM 18 there are 365 days or 52 weeks in a year Suppose ten percent (10%) of the smokers are willing to take Nicorette Medicated Chewing Gum as the first step to kick their smoking habits. It is also assumed that the smokers will consume one (1) pack containing 105 gumns for every two month (bi- monthly). Compute a one-year Income Statement (i.e. Profit & Loss) to establish the potential Net Profit/Loss After Tax for Nicorette, assuming the following: (0) Nicorette selling price to the retailers (per pack): RM 150 (11) the recommended retail selling price (per pack): RM 190 manufacturing cost of goods (per pack): RM 90 (iv) the planned advertising expense : RM 10 million (6) the sales promotion expenses : RM 5 million (vi) the corporate tax rate: 25% Please use the table formatted as below to answer this question. [20 marks) 7 5 = Income / Profit and Loss (P&L) Statement RM (million) P&L item Calculation Step by Step Solution
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