Use the Table Below to Answer the Following Question(s) -Calculate the Annual Cost Incurred for the Second Year

question 10

Multiple Choice

Use the table below to answer the following question(s) .
Dresden Pharmaceuticals has decided to go ahead and start clinical trials on a potential new drug. The total R&D costs are estimated to reach around $875,000,000 with clinical trials mounting to
$145,000,000. The current market size is estimated to be around 3,000,000 and is expected to grow at 4 percent every year. The market share Dresden hopes to capture in the first year is 7 percent, and is projected to grow by 25 percent each year for the next 4 years. A monthly prescription is anticipated to generate revenue of $420 while incurring variable costs of $150. A discount rate of 8 percent is assumed. $$\begin{array} { | l | l | } \hline \text { Dresden Pharmaceuticals } & \\\hline & \\\hline \text { Data } & \\\hline & \\\hline \text { Market Size } & 3,000,000 \\\hline \text { Unit (monthly Rx) revenue (\$) } & 420 \\\hline \text { Unit (monthly Rx) cost (\$) } & 150 \\\hline \text { Discount Rate (per cent) } & 8 \\\hline & \\\hline \text { Project Costs } & \\\hline \text { R\&D (\$) } & 875,000,000 \\\hline \text { Clinical Trials (\$) } & 145,000,000 \\\hline & \\\hline\end{array}$$
-Calculate the annual cost incurred for the second year.

• A) $1,224,120,000
• B) $884,520,000
• C) $491,400,000
• D) $638,820,000

Describe the interdependency between small and large businesses.

Recognize the significant representation of small businesses in the service sector.

Understand the rise in entrepreneurship education and the factors contributing to the increase in small business formation.

Describe the marketing concept focusing on consumer needs and organizational structure's impact on business success.

---

Definitions:

Unconditional Regard

A concept in psychology that refers to accepting and supporting someone regardless of what they say or do, typically used in the context of therapeutic relationships.

Reciprocal Determinism

A core concept of social cognitive theory that suggests individual behavior, environmental factors, and personal cognitive factors operate as interlocking determinants influencing each other.

ADHD

Attention Deficit Hyperactivity Disorder, a neurodevelopmental disorder characterized by difficulties in maintaining attention, hyperactivity, and impulsiveness.

Diagnosed

The process of identifying a disease or condition from its signs and symptoms by a health professional.