If in a given year a company spends $3 million on new product development, desig

Question

If in a given year a company spends $3 million on new product development, design, and engineering for its entry-level camera line; $6 million on new product development, design, and engineering for its multi-featured camera line; assembles and ships 1,000,000 entry-level cameras and 200,000 multi-featured cameras, then the companys production costs for new product development expenditures for entry-level cameras would be
$3.00 per camera
$5.00 per camera
capitalized and depreciated over the next five years, thus producing an average cost per entry-level camera of $0.60 annually for each of the next five years
$30.00 per camera
$7.50 per camera If in a given year a company spends $3 million on new product development, design, and engineering for its entry-level camera line; $6 million on new product development, design, and engineering for its multi-featured camera line; assembles and ships 1,000,000 entry-level cameras and 200,000 multi-featured cameras, then the company½s production costs for new product development expenditures for entry-level cameras would be $7.50 per camera $30.00 per camera capitalized and depreciated over the next five years, thus producing an average cost per entry-level camera of $0.60 annually for each of the next five years $5.00 per camera $3.00 per camera

Explanation / Answer

$30.00 per camera

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