Estimated product completion “Student”

cost 100,000
Variable cost (per unit) 15
Segment
Market Segment Size Dev. Cost
Student
Large, multidivisional
Corporate corporations
R&D and university 5000 150,000 150
laboratories
Consultants and professional 2000 100,000 100
companies 20000 200,000 200
Small businesses 15000 200,000 175
Students 500000 300,000 50

Ideal Stage:
Student Small Business Consultants
Size 500000 20000 15000
WTP 50 300 225
Variable cost 15 25 25
Contribution Margin 35 275 200
Revenue(60% for Student) 15000000 6000000 3375000
Segment Dev Cost 300000 200000 200000
Product Completion Cost 100000 200000 200000
Variable cost 7500000 500000 375000
Profit 7100000
Total Profits 30505000

Case 2: Commercial Case 3: Commercial

Case1: Student @ 50 @225 @ 300
Student
Size 500000 42000 27000
WTP 50 225 300
Variable cost 15 25 25
Contribution Margin 35 200 275
Revenue(60% for Student) 15000000 9450000 8100000
Segment Dev Cost 300000 650000 450000
Product Completion Cost 100000 200000 200000
Variable cost 7500000 1050000 675000
Total Profit 7100000 7550000 6775000
“Commerci“Industrial”
200,000 500,000
25 35
Willingness-to-Pay
-----------------------(per unit) ------------------------
Commerciaindustrial
1,200 2,500
1,000 2,000
300 600
225 300
60 100

Corporate R&D Large, Multidivisional Corporations

2000 5000
2000 2500
35 35
1965 2465
9375000 4000000 12500000 16500000
400000 100000 150000 250000
200000 500000 500000 500000
875000 70000 175000 245000
7900000 15505000

Case 4: Case 6:
Industrial Case 5: Industrial @ Industrial Case 6: Industrial
@300 600 @ 2000 @ 2500

42000 27000 7000 5000

300 600 2000 2500
35 35 35 35
265 565 1965 2465
12600000 16200000 14000000 12500000
650000 450000 250000 150000
500000 500000 500000 500000
1470000 945000 245000 175000
9980000 14305000 13005000 11675000
Multiple Version
Estimated product completion “Student” “Commerci“Industrial”
cost 100,000 200,000 500,000
Variable cost (per unit) 15 25 35
Segment Willingness-to-Pay
Market Segment Size Dev. Cost Column4 -----------------------(per
Column6 unit) ------------------------
Student Commerciaindustrial
Large, multidivisional
Corporate c
R&D and university5000 150,000 150 1,200 2,500
laboratories
Consultants and professional 2000 100,000 100 1,000 2,000
companies 20000 200,000 200 300 600
Small businesses 15000 200,000 175 225 300
Students 500000 300,000 50 60 100

Case 1 : Only 2 Versions: Student @ 50, Industrial @ 2000

Size 535000 7000

WTP 50 2000
Variable cost 15 35
Contribution Margin 35 1965
Revenue(60% for Studen16750000 14000000
Segment Dev Cost 700000 250000
Product Completion Cos 100000 500000
Variable cost 8025000 245000
Profit 7925000 13005000
Total Profits 20930000

Case 2: Three Versions Student version @50 & Commercial version @ 225 & Industrial Version @ 2000
Student Commercial Industrial
Size 500000 35000 7000
WTP 50 225 2000
Variable cost 15 25 35
Contribution Margin 35 200 1965
Revenue(60% for Studen15000000 7875000 14000000
Segment Dev Cost 300000 400000 250000
Product Completion Cos 100000 200000 500000
Variable cost 7500000 875000 245000
Profit 7100000 6400000 13005000
Total Profits 26505000

Considering Consumer surplus ₹50 for Industrial & Commercial

Student Commercial Industrial

Size 500000 35000 7000
WTP 50 175 1950
Variable cost 15 25 35
Contribution Margin 35 150 1915
Revenue(60% for Studen15000000 6125000 13650000
Segment Dev Cost 300000 400000 250000
Product Completion Cos 100000 200000 500000
Variable cost 7500000 875000 245000
Profit 7100000 4650000 12655000
Total Profits 24405000
Version @ 2000