Amazing Company manufacturing Water purifier. The expected expenses of the product life cycle of mobile for the next three years are estimated as follows: Year-1 Year-2 Year-3 Total units manufactured 50,000 100,000 200,000 Batch per units 400 500 800 Price per mobile OMR 55 OMR 50 OMR 40 R&D Cost 50,000 75,000 Production cost: Variable cost per unit Variable cost per Batch Fixed cost Marketing cost: Variable cost per unit Fixed cost OMR 8 OMR 150 OMR 100,000 OMR 100,000 OMR 100,000 OMR 9 OMR 7 OMR 200 OMR 120 OMR 2.80 OMR 2.20 OMR 2.10 OMR 75,000 OMR 75,000 OMR 75,000 Distribution cost: Units produced per batch Variable cost per unit Variable cost per Batch 200 160 120 OMR 1.5 OMR 1.5 OMR 1.5 OMR 120 OMR 120 OMR 100 Fixed cost OMR 50,000 OMR 50,000 OMR 50,000 Customer service cost per unit OMR 2 OMR 1.5 OMR 1.5 Calculate the budgeted life cycle cost and profit of mobile for three years.
Amazing Company manufacturing Water purifier. The expected expenses of the product life cycle of mobile for the next three years are estimated as follows: Year-1 Year-2 Year-3 Total units manufactured 50,000 100,000 200,000 Batch per units 400 500 800 Price per mobile OMR 55 OMR 50 OMR 40 R&D Cost 50,000 75,000 Production cost: Variable cost per unit Variable cost per Batch Fixed cost Marketing cost: Variable cost per unit Fixed cost OMR 8 OMR 150 OMR 100,000 OMR 100,000 OMR 100,000 OMR 9 OMR 7 OMR 200 OMR 120 OMR 2.80 OMR 2.20 OMR 2.10 OMR 75,000 OMR 75,000 OMR 75,000 Distribution cost: Units produced per batch Variable cost per unit Variable cost per Batch 200 160 120 OMR 1.5 OMR 1.5 OMR 1.5 OMR 120 OMR 120 OMR 100 Fixed cost OMR 50,000 OMR 50,000 OMR 50,000 Customer service cost per unit OMR 2 OMR 1.5 OMR 1.5 Calculate the budgeted life cycle cost and profit of mobile for three years.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter13: The Balanced Scorecard: Strategic-based Control
Section: Chapter Questions
Problem 8E: Hatch Manufacturing produces multiple machine parts. The theoretical cycle time for one of its...
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