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

question 105

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 operating income?

• A)$408,000
• B)$76,000
• C)$388,000
• D)$348,000
• E)$288,000

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Definitions:

Knowledge Structures

Mental frameworks or organized patterns of thought that individuals use to process, store, and retrieve information.

Scripts

Predefined sequences or schemas to perform tasks or roles, often applied in behavioral psychology and programming.

Counterfactuals

Statements or propositions imagining what would happen if past events were different, essentially considering alternative scenarios or outcomes that did not actually occur.

Severe Brain Damage

Significant injury to the brain that can lead to profound physical or cognitive impairments and changes in personality.