The water gun incurred $30 000 in development costs and is expected to be produced over the next three years.

Direct cost of producing the water gun are $40 000 per run of 5000 water gun,so total 10 000 units per year.

Indirect manufacturing cost charged to each run are $45 000

Destination charges for each water gun average $1.

Customer service expenses average $0.20 per water gun.

The water guns are selling for $25 the first year, which will increase by $3 each year thereafter.

Sales unit equal production units each year.

What are the estimated life cycle revenues?

A. $280 000

B. $250 000

C. $840 000

D.$560 000