T13-5 (book/static) Question Help Winchester Manufacturing, Inc., plans to develop a new industrial motor. The product will take 6 months to design and test. The company expects the motor to sell 10,000 units during the first 6 months of sales; 20,000 units per year over the following 2 years; and 5,000 units over the final 6 months of the product's life cycle. The company expects the following costs (Click the icon to view the cost information.) Read the requirements Requirement 1. If Winchester prices the motors at $375 each, how much operating income will the company make over the product's life cycle? What is the operating income per unit? Determine the operating income over the product's life cycle. Begin with the variable costs and then the fixed costs, along with the total life cycle operating income. Projected Life Cycle Income Statement 5 20,625,000 Data Table Variable costs Total Fixed Cost Variable Cost Period Cost for the Period per Unit Months 0-6 Design costs S 500,000 Total variable costs Months 7-12 300,000 $90 per unit Production Marketing Distribution Production Marketing Distribution Months 37-42 Production Marketing Distribution gnore the time value of money 1,000,000 00,000 $10 per unit 900,000 $70 per unit Requirements Months 13-36 2,325,000 700,000 800,000 475,000 100,000 $8 per unit $60 per unit 1. If Winchester prices the motors at S375 each, how much operating income will the company make over the products life cycle? What is the operating income per unit? 2. Winchester is concerned about the operating income it will report in the first $7 per unit sales phase. It is considering pricing the motor at $425 for the first 6 months and decreasing the p Winchester expects to sell 9,500 units instead of 10,000 units in the first 6 months, 19,000 each year over the next 2 years, and 5,000 over the last 6 months. Assuming the same cost structure given in the problem, which pricing strategy would you recommend? Explain ice to $375 thereafter. With this pr pricing strategy PrintDone Print Done