Rainbow Manufacturing Is Considering Producing a New Product

question 89

Multiple Choice

Rainbow Manufacturing is considering producing a new product.Rainbow Manufacturing expects to sell 2,000 units over the product's expected 5-year life.Variable production costs and variable selling costs are estimated at $42 and $16 per unit, respectively.Annual fixed production and fixed selling costs are estimated at $15,000 and $5,000, respectively._____ is the total fixed cost over the product life cycle.

• A)$20,000
• B)$100,000
• C)$116,000
• D)$464,000

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