Discuss the below:
Fed up with the proliferation of poorly made U.S. vehicles on the market, you decide you are only going to sell European small cars. Your car dealership sells five vehicles, the VW Golf, Saab 92X, BMW Z4 Roadster,Skoda Octavia, and the Lada Niva.
After 12 months in business, you discover that only 10 percent of people who walk through your doors will be buyers. Of those who buy vehicles, the breakdown of vehicle purchases is as follows:
VW Golf 15%
Saab 92X 15%
BMW Z4 20%
Skoda Octavia 10%
Lada Niva 40%
Q1. If 400 people walk through the door in a month, what is your total expected profit?
Q2. Based on the figures, should you continue selling your favorite car, the Lada Niva? Why or why not?