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The water gun incurred $30 000 in development costs and is expected to be produced over the next three years.
Direct cost of producing the water gun are $40 000 per run of 5000 water gun,so total 10 000 units per year.
Indirect manufacturing cost charged to each run are $45 000
Destination charges for each water gun average $1.
Customer service expenses average $0.20 per water gun.
The water guns are selling for $25 the first year, which will increase by $3 each year thereafter.
Sales unit equal production units each year.
What are the estimated life cycle revenues?
A. $280 000
B. $250 000
C. $840 000
D.$560 000
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