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You are the CFO of Atom Electronics that specialises in home-based electronics. Your CEO, Hannah, has teased industry watchers with plans to release Atom's very

You are the CFO of Atom Electronics that specialises in home-based electronics. Your CEO, Hannah, has teased industry watchers with plans to release Atom's very first entry into the smartphone market, the Atom. Rumours are that it will incorporate gPro action-camera technology, will have 5-day-long battery life and will come packed with a mini-drone attachment to allow for drone photo-taking.

What she has not made public is Atom's intention to release 3 variants:

  • ?the standard-sized 5.8-inch, Atom,
  • ?the 6.3-inch phablet, Atom Peta, and
  • ?the mid-range 5.5-inch, Atom Aplos.
  • As new entrants to the already-crowded smartphone market, Hannah is wary of the risk this presents. She had instructed a team of market research analysts to assess each of the 3 variants. Their analysis has been summarised into the following table*:

image text in transcribed
Atom Variant Est. Advertorial Types Expected Profit per Est. Marketing Budget per market market per market Atom Peta 9 $120,000 $475,000 Atom Aplos 3 $80,000 $250,000 Atom 7 $90,000 $400,000

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