Expo Manufacturing 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 $18,000 in setup costs. The new transformer incurred $50,000 in development costs and is expected to be produced over the next three years. Direct costs of producing the transformers are $45,000 per run of 4,800 transformers each. Indirect manufacturing costs charged to each run are $115,000. Destination charges for each transformer average $6.00. Customer service expenses average $0.30 per transformer. The transformers are selling for $25.00 the first year and will increase by $3.00 each year thereafter. Sales units equal production units each year. What is the estimated life-cycle operating income for the first year? O A. 2,391,000 OB. 1,194,480 OC. 226,480 OD. (226,480)