After spending $10 million on research and development, the company Patronus, Inc. rolled out a new heat-sensing home alarm system called "Thermo-Shield." Patronus has made $8 million in direct sales of "Thermo-Shield" materials to customers via their website, and $12 million in sales to the home building firm D.R. Horton that will provide the alarm system as a standard part of the new houses they are building. Also, while the alarm installation company Guardian Services does not carry "Thermo-Shield" to sell, they will install "Thermo-Shield" systems that homeowners already purchased. So far, Home Depot has recorded $2,500,000 in installation service sales putting in "Thermo-Shield" systems. Based on this information, the "Thermo-Shield" product has increased GDP by which amount? O $20.5 million O $24.5 million O $32.5 million O $30 million

After spending $10 million on research and development, the company Patronus, Inc. rolled out a new heat-sensing home alarm system called "Thermo-Shield." Patronus has made $8 million in direct sales of "Thermo-Shield" materials to customers via their website, and $12 million in sales to the home building firm D.R. Horton that will provide the alarm system as a standard part of the new houses they are building. Also, while the alarm installation company Guardian Services does not carry "Thermo-Shield" to sell, they will install "Thermo-Shield" systems that homeowners already purchased. So far, Home Depot has recorded $2,500,000 in installation service sales putting in "Thermo-Shield" systems. Based on this information, the "Thermo-Shield" product has increased GDP by which amount? O $20.5 million O $24.5 million O $32.5 million O $30 million

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

After spending $10 million on research and development, the company Patronus, Inc. rolled out a
new heat-sensing home alarm system called "Thermo-Shield." Patronus has made $8 million in
direct sales of "Thermo-Shield" materials to customers via their website, and $12 million in sales to
the home building firm D.R. Horton that will provide the alarm system as a standard part of the
new houses they are building. Also, while the alarm installation company Guardian Services does
not carry "Thermo-Shield" to sel, they will install "Thermo-Shield" systems that homeowners
already purchased. So far, Home Depot has recorded $2,500,000 in installation service sales
putting in "Thermo-Shield" systems. Based on this information, the "Thermo-Shield" product has
increased GDP by which amount?
$20.5 million
$24.5 million
O $32.5 million
$30 million

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