$1\mathrm{.}3(12$ marks$)-$ Relevant costs $-$ Chapter $8$

Tabar Inc. Is a small firm involved in the production and sale of electronic business products. The company is known for its attention to quality and innovation.

During the past $15$ months, a new product has been under development that allows hand$-$held access to e$-$mail and video images. Tabar code$-$named the product "Wireless Wonder" and has been developing two models; Basic and Uitra.

Development costs have amounted to $$121,000$ for the Basic unit and $$175,000$ for the Ultra unit. The total market demand for each model is expected to be $40,000$ units, and management anticipates being able to obtain the following market shares:

Basic: $25\%$

Ultra: $20\%$

Forecasted data is as follows:

$\backslash$table$[[,$Basic,Ultra$],[$Projected selling price$/$unit$,$$$250,$$$330$