Xxpo Manufacturing Inc., is in the process of evaluating a new product using the following information:
- A new transformer has two production runs each year, each with $10,000 in setup costs.
- The new transformer incurred $45,000 in development costs and is expected to be produced over the next three years.
- Direct costs of producing the transformers are $50,000 per run of 4.900 transformers each.
- Indirect manufacturing costs charged to each run are $45,000.
- Destination charges for each transformer average $3.
- Customer service expenses average $0,40 per transformer.
- The transformers are selling for $50 the first year and will increase by $3 each year thereafter.
- Sales units equal production units each year.
What are estimated life - cycle revenues?
A. $490,000.00
B. $1,558,200
C. $1,528800
D. $1,009,400