Practise calculating and interpreting quantitative business data for IB Business Management SL with real exam-style questions and mark schemes.
Fru-Yo (FY) produces premium-priced yoghurts. FY has strong brand loyalty and relies only on word-of mouth promotion. FY’s target market is consumers who may have health problems. FY created two new zero-sugar fruit yoghurts. FY did no market research into the new yoghurts but is confident that FY’s brand loyalty will ensure success. The market constantly changes because competitors regularly introduce new healthy yoghurts.
Fru-Yo (FY)
Fru-Yo (FY) produces premium-priced yoghurts. FY has strong brand loyalty and relies only on word-of mouth promotion. FYs target market is consumers who may have health problems.
FY created two new zero-sugar fruit yoghurts. FY did no market research into the new yoghurts but is confident that FYs brand loyalty will ensure success. The market constantly changes because competitors regularly introduce new healthy yoghurts.
Table 2 shows forecasted financial information for the two new zero-sugar fruit yoghurts, Yoghurt A and Yoghurt B.
Table 2: Forecasted financial information for FY's new zero-sugar fruit yoghurts
Using Table 2:
calculate the mean value of Yoghurt A's forecasted returns once on market (years 1-4) (show all your working).