Sam Has a Roofing Company

Multiple Choice

Sam has a roofing company.He is planning to target a new segment; cottages in Northern Quebec.The segment size in that region is 80,000 houses.He believes he could reach 1% adoption in the first year.The average selling price for shingles installation in that area is $6,000 with a profit margin of 25%.His fixed cost to target the new segment would be around $100,000.What would be the segment profit?

A) $ 480,000
B) -$ 100,000
C) $ 380,000
D) $ 280,000
E) -$ 280,000