Nutty Manufacturing Is Considering Producing a New Product

question 76

Multiple Choice

Nutty Manufacturing is considering producing a new product. Nutty Manufacturing expects that it will sell 2,000 units over the product's expected 4- 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. Research and development costs are estimated at $184,000. is the total cost over the product life cycle.

• A) $380,000
• B) $264,000
• C) $196,000
• D) $116,000

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Definitions:

VOIP Telephone Calls

Voice Over Internet Protocol calls, which use the internet for telecommunication, allowing for voice and video calls without the need for traditional phone lines.

Consensus Buying Center

A buying center in which all members of the team must reach a collective agreement that they can support a particular purchase.

Autocratic Buying Center

A decision-making group within a business where one individual makes decisions on behalf of the entire group, often without much input from others.

Autocratic

A leadership or management style characterized by individual control over all decisions with little input from group members, often leading to a top-down approach in decision making.