Sue Me Manufacturing Is Considering Producing a New Product

Multiple Choice

Sue Me Manufacturing is considering producing a new product.Sue Me 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.If the product sells for $200 per unit, the expected profit over the entire product life cycle is _____.

A) $40,000)
B) $20,000
C) $204,000
D) none of these answers is correct