ABC Electronics Corporation will be expanding its products by manufacturing power banks. It expects to sell...

 

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ABC Electronics Corporation will be expanding its products by manufacturing power banks. It expects to sell these over a period of three years by updating their power bank models throughout the period. Relevant data are as follows: Year 0 Year 1 Year 2 Year 3 Units to be sold Price per unit COSTS Research and Development Product design Manufacturing Marketing Distribution Customer Service Incremental Administrative 5,000,000 1,350,000 1,000,000 4,000,000 500,000 70,000 500 1,000,000 800,000 14,000,000 1,000,000 3,000,000 1,300,000 2,000,000 100,000 600 500,000 400,000 18,000,000 800,000 4,500,000 1,600,000 1,500,000 Required: 1. How much is the revenue to be earned throughout the product life cycle (5 points)? 2. How much is the cost to be incurred throughout the product life cycle (5 points)? 3. What is the profit margin for the product (5 points)? 60,000 700 9,000,000 500,000 2,500,000 600,000 500,000 ABC Electronics Corporation will be expanding its products by manufacturing power banks. It expects to sell these over a period of three years by updating their power bank models throughout the period. Relevant data are as follows: Year 0 Year 1 Year 2 Year 3 Units to be sold Price per unit COSTS Research and Development Product design Manufacturing Marketing Distribution Customer Service Incremental Administrative 5,000,000 1,350,000 1,000,000 4,000,000 500,000 70,000 500 1,000,000 800,000 14,000,000 1,000,000 3,000,000 1,300,000 2,000,000 100,000 600 500,000 400,000 18,000,000 800,000 4,500,000 1,600,000 1,500,000 Required: 1. How much is the revenue to be earned throughout the product life cycle (5 points)? 2. How much is the cost to be incurred throughout the product life cycle (5 points)? 3. What is the profit margin for the product (5 points)? 60,000 700 9,000,000 500,000 2,500,000 600,000 500,000

Answer rating: 100% (QA)

1 Firstin Firstout FIFO 5 points Year 0 Ending Inventory 60000 x 500 300... View the full answer