Answer the Following Questions Using the Information Below

question 36

Multiple Choice

Answer the following questions using the information below:
Snowy River Transformers is in the process of evaluating a new product using the following information:
∙ A new transformer has two production runs each year,each with $10 000 in set-up costs.
∙ The new transformer incurred $30 000 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 5000 transformers.
∙ Indirect manufacturing costs charged to each run are $45 000.
∙ Destination charges for each transformer average $1.00.
∙ Customer service expenses average $0.20 per transformer.
∙ The transformers are selling for $25 the first year and will increase by $3 each year thereafter.
∙ Sales units equal production units each year.
-What are estimated life-cycle revenues?

• A)$310 000
• B)$250 000
• C)$280 000
• D)$840 000

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Definitions:

Neurons

Nerve cells that are the basic building blocks of the nervous system, responsible for receiving and transmitting information through electrical and chemical signals.

Axon

The long, slender projection of a nerve cell, or neuron, that typically conducts electrical impulses away from the neuron's cell body.

Potassium Ions

Charged particles of potassium that play critical roles in bodily functions, including nerve transmission and muscle contraction.

Sodium Ions

charged atoms of sodium, essential for various physiological processes including muscle function and fluid balance.