Bunch Manufacturing Is Considering Producing a New Product

Multiple Choice

Bunch Manufacturing is considering producing a new product.Bunch Manufacturing expects to sell 2,000 units over the product's expected 4-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.Research and development costs are estimated at $184,000._____ is the total cost over the product life cycle.

A) $116,000
B) $196,000
C) $264,000
D) $380,000