?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??