Sue develops new computer games. She has developed two new games but she only has the capital to launch one of these.

Game A is aimed at young children of around 6-10 years old.

Game B is targeted at teenagers of around 13-18 years old.

She has forecast the following financial information:

a Define 'cost of sales'.
b Identify two reasons why retained profit of a company is not the same as its (net) profit.
c Outline two ways in which Sue could try to increase revenue for any one of her existing games.
d Explain two other pieces of information that Sue would find useful before making a choice between Game A and Game B.
e Advise Sue which game she should launch. Use calculations to support your answer.

Forecasts for next year Revenue Cost of sales Expenses Game A 3000 units @$5 $1.50 per unit $4000 Game B 2000 units @$10 $3 per unit $9000