Bicker, Inc., is in the process of evaluating a new product using the following information. A new transformer has two production runs each year, each with $10,000 in setup costs. The new transformer incurred $30,000 in development costs and is expected to be produced over the next three years. Direct costs of producing the transformers are $40,000 per run of 5,000 transformers each. Indirect manufacturing costs charged to each run are $45,000. Destination charges for each transformer average $1.00. Customer service expenses average $0.20 per transformer. The transformers are selling for $25 the first year and will increase by $3 each year thereafter. Sales units equal production units each year. What is the estimated life-cycle operating income for the first year? a. $18,000 b. $20,000 c. $48,000 d. $119,000