Chocolate Manufacturing Is Considering Producing a New Product

Multiple Choice

Chocolate Manufacturing is considering producing a new product.Chocolate Manufacturing expects to sell 15,000 units over the life of the product.Variable production costs and variable selling costs are estimated at $42 and $16 per unit, respectively.Annual fixed production and fixed selling costs are estimated at $15,000 and $5,000, respectively.Research and development costs are estimated at $184,000.___________ is the total variable cost over the product life cycle.

A) $204,000
B) $716,000
C) $870,000
D) $880,000