Purple Purpose 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 $17,000 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 $55,000 per run of 4800 transformers each. Indirect manufacturing costs charged to each run are $85,000. Destination charges for each transformer average $4.00. Customer service expenses average $0.20 per transformer. The transformers are selling for $20 the first year and will increase by $4 each year thereafter. Sales units equal production units each year. . . What is the estimated life-cycle operating income for the first year? O 192,320 O 1,698,000 O (192,320) 936,320