Paulo Sanchezfeels that there is a market niche for software that helps entrepreneurs file for a patent. Surveying the features and prices of legal forms already in the market, the Paulo believes that a price of $150 would be about right for such software. At that price, he estimates that 1,000 copies could be sold each year. To design, develop, produce and service this software, aninvestmentof $400,000 would be required. Paulo desires a 15%return on his investment(ROI).

Given these data, the target cost to create, sell, and service the software is: