disney inc is in the process of evaluating its new products. a new signal receiv
ID: 2578699 • Letter: D
Question
disney inc is in the process of evaluating its new products. a new signal receiver has two production runs each year, each with $20 000 in set up costs. the new receiver incurred $60 000 in development costs and is expected to be produced for three years. the direct costs of producing the receivers at $80 000 per run of 5 000 receivers. indirect manufacturing costs charged to each run are $90000. Destination charges for each receiver in average $2. Customer service expenses avg $0.40 per receiver. the receivers are going to sell for $50 the first year and increase by $6 each year thereafter. sales units equal production units each year . SHOW WORK
1) what is disney inc life cycle budgeted revenue a) $500k b) $1 162 000 c)$560k d) $1680 000 e) $1 500 000
2) what are the disney inc life cycle budgeted costs? a) $424k b) $639k c) $1 272 000 d) $1 392 000 e) $298k
Explanation / Answer
1. Life cycle Budgeted Revenue
The answer is d.
2. LIfe cycle budgeted costs
The answer is c.
First year (5000 x 2 x $50) $500000 Second year (5000 x 2 x $56) 560000 Third year (5000 x 2 x $62) 620000 Total $1680000Related Questions
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