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Use the Table Below to Answer the Following Question(s) -Calculate the Projected Sales for the First Year

question 43

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 projected sales for the first year.

Definitions:

Analytical Software

Computer programs designed to analyze data and provide insights, often used in contexts like market research or operational analysis.

Video Clips

Short segments of video content, typically ranging from a few seconds to a few minutes, used for various purposes such as entertainment, marketing, and education.

Sales Presentations

Sales presentations are structured talks or demonstrations aimed at showcasing a product or service to potential buyers, emphasizing its value and benefits.

Suggestive Selling

A sales technique where the seller suggests additional products or services to the customer, enhancing their purchase.