.Teletronics is going to introduce a combination phone/tablet product.

Design and testing will take 8 months. Teletronics expects to sell 24,000 units during the first 6 months of sales. Sales over the next 12 months are expected to be less robust at 20,000. And sales in the final 6 months of the expected life cycle are expected to be 9,000.

Teletronics is budgeting for this product as follows:

Months Months 08 Months 914 Months 1526 Months 2732 Type of Cost Design costs Production Marketing Distribution Production Marketing Distribution Production Marketing Distribution Total Fixed Cost for the Period $ 800,200 $ 998,400 $ 840,000 $ 432,000 $ 760,000 $1,350,000 $ 360,000 $ 351,000 $ 480,000 $ 162,000 Variable cost per Unit $65 per unit $ 5 per unit $60 per unit $ 5 per unit $58 per unit $ 5 per unit