Rainbow Manufacturing Is Considering Producing a New Product

Multiple Choice

Rainbow Manufacturing is considering producing a new product.Rainbow Manufacturing expects to sell 2,000 units over the product's expected 5-year life.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._____ is the total fixed cost over the product life cycle.

A) $20,000
B) $100,000
C) $116,000
D) $464,000