Printo's R & D team has developed a new printer which they expect would make a meaningful impact on the market. Based on a preliminary study the company has come to the conclusion: The annual admin and advertisement costs are expected to be $ 400,000 and $ 600,000 respectively. The direct labour cost for manufacture can vary. Assume it varies anywhere between $ 45 -$ 50 and hence can be described as a uniform distribution. The purchased components cost can fluctuate. The purchase manager says: the maximum price he has paid is $ 100, minimum has been $ 85 and The most likely to be $ 90 Regarding the selling price- they are considering 2 pricing strategies - either sell at $199 or offer at $ 184. Under these options it is expected that Option 1: If the Selling price be fixed at $199 : the monthly demand can be assumed normally distributed with mean 1,500 and s.d 120. Option 2: If the Selling price be fixed at $185 the monthly demand can be assumed normally distributed with mean 1,900 and s.d 150. Question: a) You are required to run a simulation model for both pricing options and recommend a price with justification. b) For developing the product a cost of one Million Dollars had been incurred by the R&D department. If the company wishes to recover the R&D Cost, in how many years can they recover based on your recommendation? c) State any relevant assumption made.