The scenic company is about to launch a new product. The test market results indicate that potential customers like the new product. Based on extensive research the following estimates have been developed for the first 3 years. These estimates are for the market as a whole. During year 1 you will be the only firm in the market:

Year 1Year 2Year 3

PriceVolumeVolumeVolume

$1030,00050,00080,000

$1420,00035,00050,000

$1810,00015,00020,000

$22 5,00010,00015,000

Assume that the estimated direct cost of building the first unit is $12 and tha a 95% experience rate will occur. If you set the price at $10, competition will not enter until year 3 and will take 30,000 units in that year. If you price at $14, competition will enter in year 2 and take away 5,000 units in year 2 and 25,000 units in year 3. If you set the price at $18 or $22 competition will enter in year 2 and they will take away half of the units in each of those years. What would be the total contribution to profits over the 3 year period for each of these pricing options. Show all of your work.