During Year 1, Rachel Manufacturing Company incurred $14,700,000 of research and de velopment (R&D) costs to create a long-life battery to use in computers. In accordance with FASB standards, the entire R\&D cost was recognized as an expense in Year 1. Manufac turing costs (direct materials, direct labor, and overhead) are expected to be $52 per unit. Packaging, shipping. and sales commissions are expected to be $10 per unit. Rachel expects to sell 2,400,000 batteries before new research renders the battery design techmologically obsolete. During Year 1. Rachel made 560,000 batteries and sold 520,000 of them. Require a. Identify the upstream and downstream costs. b. Determine the Year l amount of cost of goods sold and the ending inventory balance that would appear on the financial statements that are prepared in accordance with GAAP. c. Determine the sales price assuming that Rachel desires to eam a profit margin that is equal to 30 percent of the total cost of developing. making, and distributing the batteries. d. Prepare a GAAP-based income statement for Year 1. Use the sales price developed in Requirementc. e. Given that the price was properly established using total cost (upstream, midstream and downstream costs), why does the GAAP-based income statement prepared in Requirement d show a loss