Part$1$

Superior$-$Five$-$W$,$ a regional manufacturer that makes and markets deluxe recreational camping trailers in states and provinces that surround Lake Superior, is looking to grow sales by marketing its trailers to residents of the Desert Southwest, which consists of $23$ million people residing in $40$ counties spread across Ariz$$na$,$ California, Nevada, New Mexico, and Texas.

The company's vice$-$president $($VP$)$ of marketing, Estella Campo found the following. facts about the Desert Southwest.

$57\%$ of the region's population were under $45$ years old and $33\%$ were $46-70$ years old.

Household size average $2\mathrm{.}8$ people per household.

Median annual income in the region was $$49,000.$

$31\%$ of households had annual incomes of $$87,000$ or more.

$14\%$ of Desert Southwest households actively camped each year.

Camping trailer owners replaced their trailers with new or use one every $12$ years.

Estella's marketing strategy for the Desert Southwest$|$aimed to capture $1\mathrm{.}3\%$ market share of the region's sales by targeting campers $50$ years or older who earn incomes of $$90,000$ or more. Estella planned to price Superior's trailers in this region at $$91,000$ each.

In $2023,$ the recreational camping trailer industry sold about $69,000$ deluxe trailers in the U$.$S$.($population $=333$ million$)$ at an average price of $$67,000.$ Trailer manufacturers earned an average contribution margins of $16\%.$ Estella estimated $7\%\%$ of national trailer sales occurred in the Desert Southwest.

$1)$ what is the market potential for recreational camping trailers in the Desert Southwest in number of units and dollars?

$2)$ what is the market development index $($MDI$)$ for recreational camping trailers in the Desert Southwest? Based on the MDI, how would you describe this market?