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Author Question: Grace Greeting Cards Incorporated is starting a new business venture and are in the process of ... (Read 37 times)

APUS57

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on: Mar 6, 2021
Grace Greeting Cards Incorporated is starting a new business venture and are in the process of evaluating its product lines. Information for one new product, traditional parchment grade cards, is as follows:
∙  Sixteen times each year, a new card design will be put into production. Each new 
 design will require $700 in setup costs.
∙  The parchment grade card product line incurred $75,000 in development costs and 
 is expected to be produced over the next four years.
∙  Direct costs of producing the designs average $0.50 each.
∙  Indirect manufacturing costs are estimated at $50,000 per year.
∙  Customer service expenses average $0.10 per card.
∙  Current sales are expected to be 2,500 units of each card design. Each card sells for $4.00.
∙  Sales units equal production units each year. 

Required: 
a.  What are the estimated life-cycle revenues?
b.  What is the estimated life-cycle operating income for the first year?
c.  What is the estimated life-cycle operating income per year for the years after the first year?
d.  What is the total estimated life-cycle operating income?
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by APUS57 on Mar 6, 2021

Smiles0805

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Reply #1 on: Mar 6, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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APUS57

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Reply 2 on: Mar 6, 2021
Great answer, keep it coming :)

ghepp

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Reply 3 on: Yesterday
Excellent

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