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You are a video game producer and you are planning to introduce a brand new video game just in time for the holiday shopping season.

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You are a video game producer and you are planning to introduce a brand new video game just in time for the holiday shopping season. You are trying to decide how much the advertising budget for the launch of your video game should be. You plan to spend a minimum of $1 million, but you can spend up to a maximum of $3 million. Your marketing research team predicts that if you spend only $1 million on advertising for the launch, the least you will sell will be 1.5 million games. However, if word of mouth is strong, you could sell as many as 2.75 million games. If, however, you spend $3 million on advertising for the launch, you can expect to sell at least 2 million games, and you may sell as many as 3 million games. You plan to sell your game at a price of $20.00, and it costs you $4.00 per tame to make the games. Your fixed costs other than advertising are $8 million per year. What is the markup on your video game? $20 $4 $16 800 Not enough information is provided to answer the

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