You’re the manager of global opportunities for a U. S. manufacturer, who is considering expanding sales into Asia. Your market research has identi- fied the market potential in Malaysia, Philippines, and Singapore as described next:
Success Level Big Mediocre Failure
Malaysia Probability 0.3 0.2 0.5
Units 1,200,000 384,000 0
Philippines Probability 0.4 0.3 0.3
Units 1,400,000 700,000 0
Singapore Probability 0.1 0.7 0.2
Units 500,000 300,000 0
The product sells for $10 and has unit costs of $8. If you can enter only one market, and the cost of entering the market (regardless of which market you select) is $250,000, should you enter one of these markets? If so, which one? If you enter, what is your expected profit?

a) Yes.

b) Philippines

c) Expected profit is $1,540,000

Explanation:

a) Data and Calculations:

Market potential in Malaysia, Philippines, and Singapore as described next:

Success Level                Big          Mediocre           Failure    Expected units

Malaysia Probability      0.3              0.2                    0.5

Units                         1,200,000     384,000              0

Expected units           360,000       76,800               0           436,800

Philippines Probability  0.4              0.3                     0.3

Units                         1,400,000    700,000               0

Expected units           560,000    210,000                0          770,000

Singapore Probability   0.1             0.7                       0.2

Units                          500,000   300,000                 0

Expected units            50,000    210,000                 0         260,000

b) Determination of outcomes:

                                          Malaysia          Philippines       Singapore

Expected units                  436,800             770,000          260,000

Contribution per unit         $2                        $2                     $2

Contribution margin       $873,600        $1,540,000        $520,000

Cost of market entrance 250,000            250,000           250,000

Net Income                    $623,600        $1,290,000         $270,000

if it is for a job, then you should learn everything you can about the job, like what does it involve, what qualification is required and how you are the right person for that job. dress appropriately for the interview. get plenty of rest the night before. good luck!