1. Xenon Company incurred $1,000,000 in research and development costs over an 18 month period to develop product X1. Sales of product X1 begin at the end of the 18 month period. Sales price of product X1 is $20 per unit; variable costs are $8 per unit; fixed costs are $140,000 per month. Sales volume is projected to be 20,000 units per month. What is the breakeven time for product X1.

1. 18 months

2. none of the above

3. 10 months

4. 28 months

2. By some estimates, 80% to 85% of a product's total life costs are committed by decisions made during the ________ cycle.

1. operating

2. manufacturing

3. research, development, and engineering

4. post-sale and disposal