How would your report change if the price of desktops were $1080?

Viking InterWorks is one of many manufacturers that supplies memory products to original equipment m Show more Viking InterWorks is one of many manufacturers that supplies memory products to original equipment manufacturers (OEMs) of desktop systems. The CEO recently read an article in a trade publication that reported the projected demand for desktop systems to be: Qddesktop = 1600 2Pdesktop + 0.6M (in millions of units) where Pdesktop is the price of a desktop system and M is consumer income. The same article reported that the incomes of the desktop systems primary consumer demographic would increase 4.2 percent this year to $61300 and that the selling price of a desktop would decrease to $980 both of which the CEO viewed favorably for Viking. In a related article the CEO read that the upcoming years projected demand for 512 MB desktop memory modules is: Qdmemory = 11200 100Pmemory 2Pdesktop (in thousands of units) where Pmemory is the market price for a 512 MB memory module and Pdesktop is the selling price of a desktop system. The report also indicated that five new small start-ups entered the 512 MB memory module market bringing the total number of competitors to 100 firms. Furthermore suppose that Vikings CEO commissioned an industry-wide study to examine the industry capacity for 512 MB memory modules. The results indicate that when the industry is operating at maximum efficiency this competitive industry supplies modules according to the following function: Qsmemory = 1000 + 25Pmemory + N where Pmemory is the price of a 512 MB memory module and N is the number of memory module manufacturers in the market. Vikings CEO provides you the production manager with the above information and requests a report containing the market price for memory modules and the number of units to manufacture in the upcoming year based on the assumption that all firms producing 512 MB modules supply an equal share to the market. Market price for memory modules: $ Number of units to manufacture: How would your report change if the price of desktops were $1080? Market price for memory modules: $ Number of units to manufacture: Show less

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