QUESTION 10

Old World manufactures vintage gaming consoles. Old World has three products planned, with a number of components sourced overseas.

Product details for each model are as follows:

Details	Venus	Mars	Jupiter
Expected unit sales	25,000	38,000	8,000
Retail price per unit (excluding GST)	$650	$550	$390
Cost of goods sold (COGS) per unit	$380	$295	$250
Selling and distribution costs per unit	$100	$120	$150
Research and development (R&D) already committed costs	$95,000	$72,000	$80,000
Product life (years)	10	15	5

Which product has the lowest gross profit margin % per unit and which product has the highest mark-up % per unit? Note that the mark-up % is based on COGS.

	A.	Jupiter has the lowest gross profit margin % per unit and Mars has the highest mark-up % per unit.
	B.	Mars has the lowest gross profit margin % per unit and Venus has the highest mark-up % per unit.
	C.	Venus has the lowest gross profit margin % per unit and Mars has the highest mark-up % per unit.
	D.	Jupiter has the lowest gross profit margin % per unit and Venus has the highest mark-up % per unit.