Two-stage new product development Input Data All monetary values are in $10005. Note that real Probability of Failure 0.2 fixed costs are $4,000,000 and $2,000,000 while Fixed cost $4,000 net revenues are $10,800,000; $5,400,000; Marketing fixed cost $2,000 $1,620,000 since unit margin is in real $ but sales Unit margin $18 volume is in 1000s of units. Market Probability Sales volume Net revenue Great 0.45 600 $10,800 Fair 0.35 300 $5,400 Awful 0.2 90 $1,620 0.45 Great $4,800 $10,800 $4,800 0.35 Market Product Fair -$600 ($2,000.00) 1074 $5,400 -$600 0.8 0.2 Success Awful -$4,380 0 $1,074.00 $1,620 -$4,380 Develop Product Abandon Product ($4,000.00) ($4,000.00) 59.2 0 ($4,000.00 0.2 Failure ($4,000.00) 59.2 0 ($4,000.00) Abandon Development 0 0 o