Question
Dunder Mifflin, of Scranton, PA, is the leading manufacturer of office furniture and related items. Their products are made from solid wood, veneer, metal, and
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Dunder Mifflin, of Scranton, PA, is the leading manufacturer of office furniture and related items. Their products are made from solid wood, veneer, metal, and laminate. Dunder Mifflin is introducing a new line called The Dwight. The U.S. overall furniture market is estimated to be $24,813,556,000. Office furniture is 39% of all U.S. furniture sales. The office furniture category is composed of four distinct segments:
(1) Non-solid wood 29%; (2) Solid wood 43%; (3) Metal 18%; (4) Laminate 10%.
Sales of solid wood office furniture at the retail level are as follows: (1) Department stores 22%; (2) Chain furniture stores 40%;
(3) Independent furniture stores 17%; (4) Mass merchandisers 8%; (5) Unfinished furniture stores 9%; (6) Online 4%.
(a) If Dunder Mifflin elects to distribute The Dwight line through independent furniture stores and department stores, what is the relevant market?
$1,975600,556
$2,509,282,886
$1,622,881,003
$2,234,654,897
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