Two-Part Analysis: A software company is evaluating two new product features, A and B. Feature A costs $100,000 to develop and is projected to increase annual revenue by $30,000. Feature B costs $150,000 to develop and is projected to increase annual revenue by $40,000. The company has a development budget of $200,000 for the year. The company's goal is to maximize the *return on investment (ROI)* for the features developed this year, where ROI = (Annual Revenue Increase / Development Cost). Which feature(s) should the company develop, and what is the total projected annual revenue increase?

The correct answer to the question "Two-Part Analysis: A software company is evaluating two new product features, A and B. Feature A costs $100,000 to develop and is projected to increase annual revenue by $30,000. Feature B costs $150,000 to develop and is projected to increase annual revenue by $40,000. The company has a development budget of $200,000 for the year. The company's goal is to maximize the *return on investment (ROI)* for the features developed this year, where ROI = (Annual Revenue Increase / Development Cost). Which feature(s) should the company develop, and what is the total projected annual revenue increase?" is Option A: Develop only Feature A; Total Revenue Increase: $30,000.

The other options — B) Develop only Feature B; Total Revenue Increase: $40,000, C) Develop both Feature A and Feature B; Total Revenue Increase: $70,000, D) Develop neither feature; Total Revenue Increase: $0 — are incorrect for this GMAT Exam Prep question. As explained above: ROI for A: $30K/$100K = 0.3. ROI for B: $40K/$150K = 0.267. Feature A has a higher ROI. Developing both ($250K) exceeds the $200K budget. Developing only A stays within budget ($100K) and provides th…