The Renteria Company is considering the production of a new product. The following...

Problem | 20 Points The Renteria Company is considering the production of a new product . The following forecasts are available for the first year of production and sales :" Expected sales ( units ) 16. 000 Variable production costs $4 4 per unit Variable selling costs $18 per unit Annual fixed production costs $16, 000 Annual fixed selling costs $ 4. 000 First Year R and D costs $1 84 , 000 Expected sales price $80 per unit It is expected that Renteria Company will be able to produce and sell the product over a six year period. The volume , cost , and revenue data will be the same as above for each year . Required :` 1 . What is the total variable cost of the product over the product life- cycle ? ( 10 pts ) 2 . What is the total net income of this product of the product life- cycle ? ( 10 pts )