18.7k
Times solved
Intermediate
Difficulty
Rating

Problem Definition

Your client is the CEO of a publishing company that publishes an educational magazine and a women's magazine.

Although both businesses are profitable, they are not growing fast enough. Thus, the CEO is thinking about starting a third monthly magazine that is targeted towards 30 to 60-year-old men in the US. He wants to know whether he can reach his first-year goal of $15 million in revenue.

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18.7k
Times solved
Intermediate
Difficulty
Do you have questions on this case? Ask our community!

Exhibits

The total revenue is the sum of the revenues from

  • Retail sales (1)
  • Subscription sales (2)
  • Advertisement sales (3)

37.5% (=30/80) of the population is between 30 and 60 years old. (Assumption: Uniform age distribution and a lifespan of 80 years)