Al Drama Corporation planning to manufacture 5,000 new products in the organization. The estimated costs are given below.                   Research and development cost    OMR 20,000                   Manufacturing cost                        OMR 5 per unit                    Production and construction cost OMR 7,000                    Repair cost                                     OMR 3,000                    Maintenance cost                          OMR 5,000                    Decommissioning cost                  OMR 1,000 Choose the total life cycle cost per unit of new product: a. OMR 12.2 b. None of these c. OMR 14.2 d. OMR 13.2

Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter15: Introduction To Managerial Accounting
Section: Chapter Questions
Problem 3CMA: A firm has 100,000 in direct materials costs, 50,000 in direct labor costs, and 80,000 in overhead....
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Al Drama Corporation planning to manufacture 5,000 new products in the organization. The estimated costs are given below.

                  Research and development cost    OMR 20,000

                  Manufacturing cost                        OMR 5 per unit

                   Production and construction cost OMR 7,000

                   Repair cost                                     OMR 3,000

                   Maintenance cost                          OMR 5,000

                   Decommissioning cost                  OMR 1,000

Choose the total life cycle cost per unit of new product:

a.
OMR 12.2
b.
None of these
c.
OMR 14.2
d.
OMR 13.2
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