Company
B、is about to being developing a new product for launch in its existing market. They have forecast sales of 20,000 units and the marketing department suggest a selling price of $43/unit. The company seeks to make a mark-up of 40% product cost. It is estimated that the lifetime costs of the product will be as follows: (1) Design and development costs $43,000. (2) Manufacturing costs $15/unit. (3) Plant decommissioning costs $30,000. The company estimates that if it were to spend an additional $15,000 on design, manufacturing costs/unit could be reduced. What is the life cycle cost?
A、$18.65
B、$22
C、$22.87
D、$24
B、is about to being developing a new product for launch in its existing market. They have forecast sales of 20,000 units and the marketing department suggest a selling price of $43/unit. The company seeks to make a mark-up of 40% product cost. It is estimated that the lifetime costs of the product will be as follows: (1) Design and development costs $43,000. (2) Manufacturing costs $15/unit. (3) Plant decommissioning costs $30,000. The company estimates that if it were to spend an additional $15,000 on design, manufacturing costs/unit could be reduced. What is the life cycle cost?
A、$18.65
B、$22
C、$22.87
D、$24
【参考答案及解析】
The original life cycle cost per unit = ($43,000 + (20,000 × $15) + $30,000)/20,000 = $18.65
The original life cycle cost per unit = ($43,000 + (20,000 × $15) + $30,000)/20,000 = $18.65