1.A. The following data is provided by George LTD for the product model S-6

DIRECT MATERIAL PER UNIT $120 DIRECT LABOUR COST PER UNIT 80 ALLOCATED FIXED SELLING AND 75 ADMINISTRATIVE COST VARIABLE MANUFACTURING 100 OVERHEAD PER UNIT APPLIED FIXED MANUFACTURING 205 COST VARIABLE SELLING AND 45 ADMINISTRATIVE COSTINITIAL COST $65,000 ESTIMATED USEFUL LIFE 8 YEARS ANNUAL CASH INFLOW $25,000 ANNUAL CASH OUTFLOWS $15,400 SALVAGE VALUE $18,000