You have presented the following company information to the Production manager: Table 2: Product Cost at lifecycle stage

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You Have Presented The Following Company Information To The Production Manager Table 2 Product Cost At Lifecycle Stage 1 (37.66 KiB) Viewed 18 times

You have presented the following company information to the Production manager: Table 2: Product Cost at lifecycle stages Development IntroductioGrowth Maturity Decline n R&D 90 000 Marketing Cost 70 000 40 000 30 000 80 000 Production Cost per unit 400 350 300 320 (R) Production volume 40 000 8 000 11 000 3 000 After careful consideration, the production manager says that a price of R40.25 should cover the cost and presented the information in Table 3 to support it Page 3 of 4 LEN 3701/51/2022 Amortise R&D Marketing Cost Production cost Total Cost Total Production Cost per unit Table 3: Cost per Unit R 300 000/4 75 000 70 000 4000 4 16 000 161 000 4 000 161 00014 000 = 40.25 2.4 Calculate the lifecycle cost of the product and suggest an alternative price. (11) [30]