Amazing Company manufacturing Water purifier. The expectedexpenses of the product life cycle of mobile for the next three years areestimated as follows:Year-1Year-2Year-3Total units manufactured50,000100,000200,000Batch per units400500800Price per mobileOMR 55OMR 50OMR 40R&D Cost50,00075,000Production cost:Variable cost per unitVariable cost per BatchFixed costMarketing cost:Variable cost per unitFixed costOMR 8OMR 150OMR 100,000 OMR 100,000 OMR 100,000OMR 9OMR 7OMR 200OMR 120OMR 2.80OMR 2.20OMR 2.10OMR 75,000 OMR 75,000 OMR 75,000Distribution cost:Units produced per batchVariable cost per unitVariable cost per Batch200160120OMR 1.5OMR 1.5OMR 1.5OMR 120OMR 120OMR 100Fixed costOMR 50,000 OMR 50,000 OMR 50,000Customer service cost per unit OMR 2OMR 1.5OMR 1.5Calculate the budgeted life cycle cost and profit of mobile for threeyears.

Life cycle cost: It is a method of estimating the total cost of the product over the life cycle of…

Answered: Amazing Company manufacturing Water…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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