The water gun incurred $30 000 in development costs and is expected to be produced...
60.1K
Verified Solution
Link Copied!
Question
Accounting
The water gun incurred $30 000 in development costs and is expected to be produced over the next three years.
Direct cost of producing the water gun are $40 000 per run of 5000 water gun,so total 10 000 units per year.
Indirect manufacturing cost charged to each run are $45 000
Destination charges for each water gun average $1.
Customer service expenses average $0.20 per water gun.
The water guns are selling for $25 the first year, which will increase by $3 each year thereafter.
Sales unit equal production units each year.
What are the estimated life cycle revenues?
A. $280 000
B. $250 000
C. $840 000
D.$560 000
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.