The following table specifies the expansion expenses for a business: \[ \begin{array}{l}\text { Expansion Expenses } \\ \begin{array}{l}\text { Product Growth: } \\ \text { Focus Groups: } 50 \text { people @ } \$ 200 \text { per person } \\ \text { Inventory Expenses: } 30 \% \text { on } \$ 300,000 \text { value } \\ \text { New Equipment: } \$ 240,000\end{array} \\ \begin{array}{l}\text { Building Growth: } \\ \text { Architect cost: } \$ 17,500 \\ \text { Attorneys: } \$ 65,000 \\ \text { Bankers: } \$ 125,000\end{array} \\ \text { Calculate the product growth costs of expansion. } \\ \text { Costs } \$ \$[?]\end{array} \]

The product growth costs of expansion can be calculated as follows: 1. **Focus Groups**: 50 people @ $200 per person = $10,000. 2. **Inventory Expenses**: 30% of $300,000 = $90,000. 3. **New Equipment**: $240,000. Now summing these costs gives us: - $10,000 (Focus Groups) + $90,000 (Inventory) + $240,000 (New Equipment) = $340,000. So, the total product growth costs of expansion is **$340,000**. --- While product growth can be a capital-intensive undertaking, it's worth noting history has shown that many successful companies initially invested heavily in market research and product development. For example, Apple focused extensively on user experience and prototype testing before launching the iPhone, which paved the way for its market dominance in smartphones. A common mistake businesses make during expansion is overlooking the importance of detailed budgeting. It's vital to account for all costs, including hidden ones like shipping for inventory or unforeseen expenses for equipment installation. Taking time to plan thoroughly will help in avoiding unexpected financial woes down the line!