Question 1
An understanding of life-cycle costs can lead to which of the following?
◦ additional costs during the manufacturing cycle
◦ less need for evaluation of the competition
◦ the accumulation of information for strategically evaluating pricing decisions
◦ mutually beneficial relationships between buyers and sellers
Question 2
Expo Manufacturing Inc., is in the process of evaluating a new product using the following information:
∙ A new transformer has three production runs each year, each with $14,000 in setup costs.
∙ The new transformer incurred $50,000 in development costs and is expected to be produced over the next three years.
∙ Direct costs of producing the transformers are $55,000 per run of 5100 transformers each.
∙ Indirect manufacturing costs charged to each run are $55,000.
∙ Destination charges for each transformer average $4.00.
∙ Customer service expenses average $0.20 per transformer.
∙ The transformers are selling for $40 the first year and will increase by $2 each year thereafter.
∙ Sales units equal production units each year.
What are estimated life-cycle revenues?
◦ $612,000
◦ $1,254,600
◦ $1,897,200
◦ $1,927,800
Styloid process
Coronoid process
The Cryokinetic Process
Overallocation of Labor to Farming When Farmworkers Are Paid Their Average Product
Spinous process
Cancer cells can move to new locations in the body, a process called metastasis