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B Reduce the cost of product development (4.0), but increase the cost of marketing and support (6.0) Which one is better (according to the results at the end of Year 4)? Uncertainty.' Model Values Model Inputs Sales Volume Growth, machines Initial Sales Volume, machines Initial Retail Price, machines Distributor + Retail Margin Retail Price Growth, machines Product Development Equipment and Tooling Production Ramp-up Market Launch Marketing and Support Production Cost, machines Production Overhead Model Values 15% per year 200000 unitsfyear $260 per unit -10% per year 5.0 $M over 1 year 4.0 $M over 1/2 year 2.0 $M over 1/2 year 10.0 $M over 1/2 year 5.0 $Wyear $55 per unit 1.0 $M1year Base 15% 200000 $260 5.0 4.0 10.0 5.0 1.0 Worst 100000 $225 7.0 5.0 2.5 15.0 6.0 $60 12 Best 25% 250000 $295 35% 5% 4.0 3.0 1.5 8.0 4.0 $50 0.8