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Your task is to write a memorandum to each of these clients explaining (in a professional way) how they are misunderstanding the information presented in
Your task is to write a memorandum to each of these clients explaining (in a professional way) how they are misunderstanding the information presented in the slide and what the correct interpretation of the data is. If you wish, you can make a recommendation to invest or not, but your primary goal is to make sure that your client has a correct understanding of the situation so that they can make the best decision themselves.
Client 1: Mr. Rose I went to a pitch meeting from GHEOM Corp. They are a relatively new company, but their product is promising. Their monthly sales have been growing steadily over the past few years (ignoring the effects of the pandemic). While they have been losing money so far, as is normal for a new company, they believe that they are on the verge of being profitable. They have done an analysis of their marginal profit on a monthly basis, and they say that the marginal profit becomes positive at about the 20,000th unit sold in a month. Since their monthly sales have just surpassed 20,000 units, they should be profitable from this point on. As a new investor, I would not have to absorb any of their past losses and would be in prime position to benefit from their upcoming profits. Monthly Sales (by quarter) 1/4 2121 + Monthly Sales (by quarter) . 15. Mont Sales 10,00 co G Oji Stato So ON Oy O wo Os Marginal Profit (on a monthly basis) 54 52 50 2,000 3 5,000 000 000 . 12,000 14.000 8 0009 coo' Marginal Profit -110 -314 Item Sold Client 1: Mr. Rose I went to a pitch meeting from GHEOM Corp. They are a relatively new company, but their product is promising. Their monthly sales have been growing steadily over the past few years (ignoring the effects of the pandemic). While they have been losing money so far, as is normal for a new company, they believe that they are on the verge of being profitable. They have done an analysis of their marginal profit on a monthly basis, and they say that the marginal profit becomes positive at about the 20,000th unit sold in a month. Since their monthly sales have just surpassed 20,000 units, they should be profitable from this point on. As a new investor, I would not have to absorb any of their past losses and would be in prime position to benefit from their upcoming profits. Monthly Sales (by quarter) 1/4 2121 + Monthly Sales (by quarter) . 15. Mont Sales 10,00 co G Oji Stato So ON Oy O wo Os Marginal Profit (on a monthly basis) 54 52 50 2,000 3 5,000 000 000 . 12,000 14.000 8 0009 coo' Marginal Profit -110 -314 Item Sold Write a short memorandum (0.5 to 1 page) to each client explaining their misunderstanding and the correct interpretation of the slides.
You must use the ideas of "derivative/slope/rate of change" and/or "integral/area/accumulated change" in your explanation, but it must be understandable to your clients (who have never taken any calculus classes). WILL THUMBS UP
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