Kendo Corp.is projecting sales of $15 million in the coming year.If the size of the market is $50 million,and Kendo's projected market share is 25%,what is the average sale price of its products?

Question

Quizplus · Accepted Answer

If Kendo Corp.'s projected market share is 25%, that means they are projecting to capture 25% of the $50 million market, which is $12.5 million ($50 million x 0.25 = $12.5 million).

To find the average sale price of Kendo's products, we can divide their projected sales ($15 million) by their projected market share ($12.5 million): 
$15 million / $12.5 million = 1.2

Therefore, the average sale price of Kendo's products is $1.20.

The other answer choices do not yield the correct calculation.