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Author Question: Expo Manufacturing Inc., is in the process of evaluating a new product using the following ... (Read 68 times)

lbcchick

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on: Mar 6, 2021
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 $15,000 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 $40,000 per run of 5700 transformers each.
∙  Indirect manufacturing costs charged to each run are $115,000.
∙  Destination charges for each transformer average $2.00.
∙  Customer service expenses average $0.70 per transformer.
∙  The transformers are selling for $35 the first year and will increase by $2 each year thereafter.
∙  Sales units equal production units each year.

What is the estimated life-cycle operating income for the first three years?
◦ $556,170
◦ $2,221,170
◦ $179,590
◦ $2,196,970
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by lbcchick on Mar 6, 2021

Tonyam972

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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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lbcchick

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Reply 2 on: Mar 6, 2021
Excellent

ttt030911

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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