1. Jellman Company is considering developing a product that will cost $50 per unit in direct materials and will require 4 hours of direct labor to manufacture, costing $10 per hour. Jellman applies variable manufacturing overhead at a rate of 75% of direct labor costs. Producing the product will require Jellman to incur fixed manufacturing overhead costs of $240,000 per year.

Jellman estimates that it will spend $4,000,000 on advertising, marketing, and administrative expenses for the product over its 10-year life, during which time an average of 3,000 units will be sold each year.

Calculate the total costs of the product over its life cycle.