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Matrix Inc. is a conglomerate with huge investments in technology, space travel, and virtual reality industries. Morpheus - the President of the company has ambitious

Matrix Inc. is a conglomerate with huge investments in technology, space travel, and virtual reality industries. Morpheus - the President of the company has ambitious goals for expansion. He is looking for opportunities in fields related to the company's 2 existing businesses. He appointed Neo as the director of innovative product development with seed money of $30 million. After months and months of hard work, Neo's team has developed a Super Pill that they believe may enhance human brain capability. Controlled usage of the Pill will enable humans to learn new things 5x faster and process information as fast as a Pentium-I processor. He presented the findings at a board meeting and claimed that Matrix Inc. can make huge profits if it decided to market the pill. Furthermore, he told the team that with a little bit of more investment they could develop different versions of the pill. Trinity questions the team if there are potential side effects of the drug. To everyone's surprise, no proven clinical tests have been done so far but Neo insists there are absolutely no side effects of the drug since it is made from all organic natural materials. Morpheus asks the team to provide cost analysis of four versions of the pill before any further decision can be made. Neo presents the cost data which is summarized in Table 1

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Table 1: Super Pill Cost Data Pill Development Cost Variable Cost per shipping case Blue $1,850,000 $300 Orange $2,900,000 $250 Green $3,500,000 $170 Yellow $4,500,000 $125

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