. MK international Ltd has developed a new product "A" which is to be launched soon. The company anticipates to sell 1, 25,000 of these units at a price of Rs. 400 per unit over the product life cycle of three years. The other data pertaining to Product "A" are as under: Particulars Amt. (in Rs.) Research and development cost 32,50,000 Manufacturing cost per unit 175 Fixed manufacturing cost per year 12,75,000 Marketing cost per unit (including 4% commission on sales 90 Fixed marketing cost per year 6,72,000 Administration cost 6,60,000 per year Warranty expenses 4 replacement parts per 50 units are Rs.30 per part ...2/- 2/- Calculate: a) The life cycle of the product "A" (7 Marks) b) The revised life cycle cost if the MK international Ltd. increase sales by 12% through 5% reduction in sales price along with increase in fixed manufacturing cost by Rs. 1, 20,000 per year. (6 Marks) c) Should the company go for reduction in sale price? (2 Marks)