The following revenue and cost data are for Sawyer Manufacturing's two radial saws. The L80 is for the commercial market and the L100 is for industrial customers. Both products are expected to have three-year life cycles.

L80 ($ in thousands)	2017				2018					2019
Revenues	$	800			$	2,300				$	3,100
Costs
Research and development		1,400				-					-
Prototypes		350				50					-
Marketing		60				600					475
Distribution		60				120					130
Manufacturing		20				770					1,350
Customer service		-				60					85
Total cost	$	1,890			$	1,600				$	2,040
Operating profit	$	(1,090	)		$	700				$	1,060

L100 ($ in thousands)	2017				2018						2019
Revenues	$	900				$	1,900					$	2,200
Costs
Research and development		650					-						-
Prototypes		300					30						10
Marketing		124					200						260
Distribution		170					200						410
Manufacturing		85					700						770
Customer service		-					20						300
Total cost	$	1,329				$	1,150					$	1,750
Operating profit	$	(429	)			$	750					$	450

Required:

How would a product life-cycle income statement differ from the above income statements?

Prepare a three-year life-cycle income statement for both products. Which product appears to be more profitable and why?

Prepare a schedule showing each cost category as a percentage of total annual costs. What do you think this indicates about the profitability of each product over the three-year life cycle?