following estimates have been produced for a new product with an expected life in four years. Units made and sold Year 1 5,000 $ Research and development cost 0.9 million Marketing costs 0.3 million Production cost per unit 80 Customer service cost per unit 20 Disposal costs Life-cycle costing What is the expected life cycle cost per unit? Select one: O a. $92.00 O b. $88.00 Oc. $48.00 O d. $57.50 Year 2 10,000 $ 0.3 million 0.3 million 40 15 Year 3 25,000 $ 0.1 million 30 10 Year 4 10,000 $ 0.1 million 30 5 0.2 million

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
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The following estimates have been produced for a new product with an expected life in four years.
Year 1
5,000
$
Research and development cost 0.9 million
0.3 million
80
20
Units made and sold
Marketing costs
Production cost per unit
Customer service cost per unit
Disposal costs
Life-cycle costing
What is the expected life cycle cost per unit?
Select one:
O a. $92.00
O b. $88.00
Oc. $48.00
O d. $57.50
Year 2
10,000
$
0.3 million
0.3 million
40
15
Year 3
25,000
$
0.1 million
30
10
Year 4
10,000
$
0.1 million
30
0.2 million
Transcribed Image Text:The following estimates have been produced for a new product with an expected life in four years. Year 1 5,000 $ Research and development cost 0.9 million 0.3 million 80 20 Units made and sold Marketing costs Production cost per unit Customer service cost per unit Disposal costs Life-cycle costing What is the expected life cycle cost per unit? Select one: O a. $92.00 O b. $88.00 Oc. $48.00 O d. $57.50 Year 2 10,000 $ 0.3 million 0.3 million 40 15 Year 3 25,000 $ 0.1 million 30 10 Year 4 10,000 $ 0.1 million 30 0.2 million
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