1. ROI

2. Retail$49.99 Wholesale$39.00 Hardware license($7.00) Manufacturing, packaging, manual($3.00) Distribution costs($0.50) Net revenue per unit$28.50 Units Sold200,000500,0001,000,0002,000,000 Gross receipts$5,700,000$14,250,000$28,500,000$57,000,000 Development cost($5,000,000) License5%($285,000)($712,500)($1,425,000)($2,850,000) Net receipts$415,000$8,537,500$22,075,000$49,150,000 Developer royalty15%($2,372,500) Return reserve15%($855,000)($2,137,500)($4,275,000)($8,550,000) Marketing, MDF, commissions15%($855,000)($2,137,500)($4,275,000)($8,550,000) Profit($1,295,000)$4,262,500$13,525,000$29,677,500

3. Retail$7.99 Wholesale$5.59 Distribution costs($0.50) Net revenue per unit$5.09 Units Sold200,000500,0001,000,0002,000,000 Gross receipts$1,018,600$2,546,500$5,093,000$10,186,000 Development cost($750,000) License5%($50,930)($127,325)($254,650)($509,300) Net receipts$217,670$1,669,175$4,088,350$8,926,700 Developer royalty30%($500,753)($1,226,505)($2,678,010) Marketing10%($101,860)($254,650)($509,300)($1,018,600) Profit$115,810$913,773$2,352,545$5,230,090