Question 3
Marking Guide

Total revenue 0·5
Design and development costs 1·5
Inclusion of full $500k patent application 1
Annual patent renewal costs 0·5
Exclusion of opportunity cost 1·5
Materials 0·5
Labour 0·5
Fixed production 0·5
Marketing 2
Selling and distribution 0·5
Environmental 0·5
Expected profit 0·5
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10