Tim Walters, the COO of BioDerm, has asked his cost management team for a product-line profitability analysis for his firm's two products, Xderm and Yderm. The two skin care products require a large amount of research and development and advertising. After receiving the following statement from BioDerm's costing team, Tim concludes that Xderm is the more profitable product and that perhaps cost-cutting measures should be applied to Yderm. Required: (i) Briefly explain why Tim may be wrong in his assessment of the relative performance of the two products. ( 2 marks) (ii) Suppose that 80% of the R\&D and selling expenses are traceable to Xderm. Prepare life-cycle income statements for each product. What does this indicate about the importance of accurate lifecycle costing? (4 marks)