Question 2:(A) Brave company is considering the developing of a new product. The following estimated information is about costs and sales have been estimated over the life of the product. Calculate the estimated cycle cost and cost per unit. Year 2021 (OMR)Year 2022 ( OMR)Year 2023 ( OMR)Year 2024 ( OMR)Production costs Variable 222Fixed 200,000200,000200,000Development costs150,000 Marketing150,00075,00075,00075,000Volumes ( Units) 150,000150,000125,000Selling price/Unit 865

Cycle cost refers to the cost of producing a product over its life cycle. Cycle refers to the number…

Answered: A) Brave company is considering the…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 7EA: Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per...

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Question 2:

(A) Brave company is considering the developing of a new product. The following estimated information is about costs and sales have been estimated over the life of the product. Calculate the estimated cycle cost and cost per unit.

	Year 2021 (OMR)	Year 2022 ( OMR)	Year 2023 ( OMR)	Year 2024 ( OMR)
Production costs
Variable		2	2	2
Fixed		200,000	200,000	200,000
Development costs	150,000
Marketing	150,000	75,000	75,000	75,000
Volumes ( Units)		150,000	150,000	125,000
Selling price/Unit		8	6	5

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