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Rainbow Company is considering the production of a new.product. Rainbow Company has the following data available: Expected product life Expected sales (units) over product ife
Rainbow Company is considering the production of a new.product. Rainbow Company has the following data available: Expected product life Expected sales (units) over product ife Variable production costs Variable seling costs Annual fixed production costs Annual fixed selling costs 5 years 2,000 $42 per unit $16 per unit $15,000 $5,000 What is the total fixed cost of the product over the product life cycle? OA. $116,000 O B. $100,000 O C. $464,000 O D. $20,000 Click to select your answer 3 8
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