1. Jobe and Finney have segmented their market opportunities into geography and enterprises within those geographies. Using a segmentation technique (table, diagram, option tree, etc),show the options they are considering and highlight (circle, bold) which ones are the most promising.
2. Based on your answer in 1 and based on two of the most promising opportunities, calculatefor the first year of operation: (for each part, note any assumptions that you make)-
.- Cost of goods sold. Show your itemization.
– Gross Income- Calculate the overhead costs (Sales, general and administrative). Show your itemization.
– Assume 40% tax, what is the tax expense.
– Net Income. Summarize your numbers in an income statement table (yes, many elements in a traditional income statement is missing).
Summarize your numbers in an income statement table (yes, many elements in a traditional income statement is missing).
3. Should they go ahead with the business or back off? Why?