fast please Case Study 2:Success Electronics LLC is planning to introduce a low cost smart phone with attractive features. The market research information suggests thatthe product should sell 2000 units at RO 30 per unit. The company seeks to make a mark-up of 20% product cost. It is estimated that the lifetimecosts of the product will be as follows:Design and development costs RO 5000Manufacturing costs RO 22 per unitEnd of life costs RO 7000Based on the above case, answer the following THREE questions: What is target cost per unit to achieve the desired profit?O a. RO 20 per unitO b. RO 22 per unitOc. RO 25 per unitO d. RO 24 per unitWhat is the desired profit per unit?O a. RO 6 per unitO b. RO 15 per unitO c. RO 10 per unitO d. RO 5 per unitWhat is the original lifecycle cost per unit and is the product worth making on that basis?RO 28 per unit; The product is not worth makingO b. RO 29 per unit; The product is not worth makingRO 24 per unit; The product is worth makingO d. RO 23 per unit; The product is worth makingO c.

Markup = Sales x markup % / (1 + markup %) = 30 x 20% / (1+0.20) = RO 5

Case Study 2: Success Electronics LLC is planning to introduce a low cost smart phone with attractive features. The market research information suggests that the product should sell 2000 units at RO 30 per unit. The company seeks to make a mark-up of 20% product cost. It is estimated that the lifetime costs of the product will be as follows: Design and development costs RO 5000 Manufacturing costs RO 22 per unit End of life costs RO 7000 Based on the above case, answer the following THREE questions:

Case Study 2: Success Electronics LLC is planning to introduce a low cost smart phone with attractive features. The market research information suggests that the product should sell 2000 units at RO 30 per unit. The company seeks to make a mark-up of 20% product cost. It is estimated that the lifetime costs of the product will be as follows: Design and development costs RO 5000 Manufacturing costs RO 22 per unit End of life costs RO 7000 Based on the above case, answer the following THREE questions:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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