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Drone Technology (DT) manufactures high tech drones for the emerging high-tech toy market Marketing research information suggests that customers are willing to pay RM 550

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Drone Technology (DT) manufactures high tech drones for the emerging high-tech toy market Marketing research information suggests that customers are willing to pay RM 550 per unit for the new model that DT is going to launch. At that price, DT expects to sell 800 units per year (2.400 units for 3 years) for the next 3 years of its product life. The following are cost information for this new product Research & Development costs RM 825,000 Copyright application costs RM 5,000 Manufacturing costs per unit: Material RM 6/unit Labor RM 3/unit O/H RM 1/unit Unit costs RM 10/unit A. Using Product Life Cycle Costing, calculate the cost to produce one unit of the new product (to the nearest RM). (3 marks) I Your answer B. Due to the short product life cycle of the product DT planned to maximize profit by setting profit objective of 50% profit margin Calculate the price. (2 marks) Your answer C. Manufacturing engineers are confident that manufacturing cost will be reduced by 60% from current RM 10 per unit if the DT invests additional RM 10,000 in new design software which will reduce the number of component parts of the product. Calculate the new PLC cost per unit if DT invest in the new design software. Would you recommend DT to invest in the new design software? Support your recommendation with cost/benefit analysis (to the nearest RM). (5 marks) Your

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