4,000,000 units should be sold a company
Explanation:
Calculating the sales in units:
It has been given that the toal market demand is $20 million, average quantity purchased by buyer per year is 2 units, price average is $50, and the desired share of the market is 10%.
[tex]Q=n * q * p[/tex]
Where:
Q = Total market demand,
N = number of buyers in the market, q = average quantity purchased by the buyer per year,
P = price of average unit
[tex]$\mathrm{Q}=20,000,000$ buyers $* 2$ per unit per buyer $* \$ 50$ per unit[/tex]
= $2,000,000,000
Market share = [tex]$(20,000,000 \text { buyers } * 2 \text { units per buyer }) * 0.1$[/tex]
= 4,000,000 units
Hence, the company should sell 4 million units to achieve 10 percent market share.
