16. (4pts) Assuming that the only bike that you currently make is an Adventurer bike with specifications of Style/Design = 50 and Technical = 60, then how much would it cost to develop a racer bike with Style/Design = 22 and Technical = 90? The change costs for Style/Design = $1,000 and for Technical is $20,000.

A. $590,000

B. $638,000

C. $790,000

D. $628,000

E. $666,000

17. (4pts) Assume you are targeting the Adventure market segment that has an estimated market size of 50,000 customers, and media viewing habits of TV 40%; Internet 30%; and Magazines 50%. If a $1,000,000 expenditure on TV advertising will reach 20% of the TV viewing market, how many potential customers in the Adventure segment would that expenditure reach?

A. 4,000 customers

B. 5,000 customers

C. 6,000 customers

D. 8,000 customers

E. 10,000 customers