AutoSave C 9. advance management accounting Anifur Rahman AR 23 X File Home Insert Mailings Review View Help O Search Header IR Design Layout References Pictures Icons online Pictures 3D Models Shapes SmartArt Cover Page Blank Page one Break Chart Screenshot 29 LA Share Comments TT Equation Symbol Link Bookmark Crossreference It Get Add-ins W My Add-ins - Wikipedia Table Comment Document Item Online Video Tooler Page Number Tex BOX O Pages Tables Illustrations Tap Add-ins Macia Lnler Comments Header Footer Text Symbols Question 3: (20 marks) The marketing department of Ilercules Ltd. is planning to introduce a new product called H-5. The product details are as follows: Based on the market considerations, the target selling price per unit would be $800. The company's target profit margin on sales for all new products is 25% of sales. The initial estimate to manufacture one unit of H-5 includes: direct material $230; direct labour $125 and the manufacturing overhead to be applied at 80% of direct labour cost The estimated upstream and downstream costs and the estimated sales of the proposed model H-5 are as follows: Year 2 Year 3 Year + Year 5 Year 1 Research and Development $3.960,000 Product and process design $1,560,000 Marketing Customer support Expected sales (units) $792,000 $888,000 $360,000 16.560 $600,000 $1,008,000 9,120 $504,000 $720.000 4,320 S312,000 Required: a. Prepare a Year 1 to Year 5 Life Cycle Budget for the H-5 model and use this budget to estimate the average unit cost. On this basis, would you recommend the development and introduction of the H-5 model? Explain. (16 marks) Page 5 of 10 of 10 words DO Engish (United States Focus 1104 Type here to search o EN B 4) ENG 1:06 PM 25/10/2020