5. Great Products Ltd has a range of products which are in regular demand but needs to introduce new products from time to time to maintain protability. The following shows the forecast Income statement for the next 5 years before introducing nevi.r products. Great Products Ltd Forecast Income statement 2022 2023 2024 2025 2026 2027 M EM EM EM EM M Sales 400 380 360 300 250 200 Cost of sales @ E E E E m Contribution @ E m E E E Marketing 8 9 8 0 4 4 Fixed expe nses E E Q E E E Net Income m 111 m E Q E The companyr has an active Research and Development department and has one product ready for launch (The Maxilla] in 2022 and another [T he Fantosa} being prepared for launch in 2024. Each successful product is allocated a share ofthe Development budget. Disposal costs are charged in the year of disposal. The products have the following estimates Maxilla Fantosa Allocated R 8. D ?0 Million 20m Estimated sales price per unit 2022 80 2023 65 2024 55 60 2025 40 50 2026 E50 202? E45 Estimated variable costs 30 per unit 15 per unit Marketing 2% of sales value 2% of sales value Estimated unit sales 2022 800,000 units 2023 1 200,000 units 2024 600,000 units 2025 300,000 units Disposal costs end of year 2025 200,000 No disposal costs The lifecycle revenue less costs is expected to provide at least 10% return on sales taking the sales of the life cycle as a whole. a] Dene lifecycle costing and explain howr the information provided by the method is used. b i) Show the lifecycle of the Maxilla product and comment on your calculations. ii} Show the net income for each year assuming that the Maxilla product goes ahead {you are not required to show all the changes in each line item}. c i} Assuming that Fantosa has a four year life and Great Products Ltd wishes to maintain the same prot as the year 2022 with the Maxilla product going ahead. Using the information in the table above, show the level of sales units which Fantosa must achieve in each specic year to meet the target. ' ii} Comment on your calculations in part c i] and advise Great Products Ltd concerning their future product developments. [3 marks}