Questions 3. Calculate the ROI price (show your work to received partial credits if the result is incorrect) (3pt)

Suppose that a food processor is developing a new whole grain pasta with a total investment costs (e.g. R&D and new machinery) is $100,000. Suppose that xed cost per year is $30,000, and marginal cost is $4.00/box. The budgeted sales is 50,000 units per year. What is the ROI price at 20% of ROI?

Question 4: Same situation as in Question 3, the new product can be sold over 5 years. What is the cost-plus price if your chosen mark-up is 20%? (3pt)

Question 5: Same situation as in Question 3, the annual demand curve is Q = 30000 - 2500P. What is the profit maximizing price this monopolistic producer can charge while the product is in patent protection? (4pt)