Clark inc, expects to incur the following selected costs an a new product being planned for introduction early next.

Clark inc, expects to incur the following selected costs an a new product being planned for introduction early next.

✑ Design an development costs of $100,000 that will be incurred this year.

✑ Marketing costs of $50,000 to be incurred %50 this year %50 year

✑ Manufacturing costs of $500,000 to be incurred next year.

✑ In addition to external market factors, the pricing decision should be based on cost.

The product cost that should be used is
A . $500,000
B. $525, 000
C. $550,000
D. $650, 000

View Answer

Answer: D