Use the Information Below to Answer the Following Question(s)

question 45

Multiple Choice

Use the information below to answer the following question(s) .Satellite Inc.is in the process of evaluating its new products.A new signal receiver has two production runs each year, each with $20,000 in setup costs.The new receiver incurred $60,000 in development costs and is expected to be produced for three years.The direct costs of producing the receivers are $80,000 per run of 5,000 receivers.Indirect manufacturing costs charged to each run are $90,000.Destination charges for each receiver average $2.00.Customer service expenses average $0.40 per receiver.The receivers are going to sell for $50 the first year and increase by $6 each year thereafter.Sales units equal production units each year.
-What is the Satellite Inc.life cycle budgeted revenue?

• A)$500,000
• B)$560,000
• C)$1,620,000
• D)$1,680,000
• E)$1,500,000

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Definitions:

Mortality Rate

A measure of the frequency of occurrence of death in a defined population during a specific time period.

Widowhood

The status of a person who has lost a spouse through death and has not remarried.

Spouses

Partners in a marriage or a similar intimate relationship recognized legally, socially, or religiously.

Anxiety And Depression

Conditions characterized by persistent worry, fear, sadness, and a lack of interest in life that interfere with daily activities.