You have presented the following company information to the Production manager: Table 2 : Product Cost

	Development	Introduction	Growth	Maturity	Decline
R & D	300 000
Marketing Cost		70 000	40 000	30 000	80 000
Production Cost Per Unit (R)		400	350	300	320
Production Volume		40 000	8 000	11 000	3 000

After careful consideration, the production manager says that a price of R40.25 should cover the cost and presented the information in Table 3 to support it: Table 3 : Cost per Unit

		R
Amortise R & D	300 000/4	75 000
Marketing cost		70 000
Production cost	4000*4	16 000
Total cost		161 000
Total Production		4 000
Cost Per Unit		161 000/4 000 = 40.25

2.4 Calculate the lifecycle cost of the product and suggest an alternative price. (11)