Lifecycle costing Questions!

22-SNT is a Japanese electronics giant specialising in the production of game consoles. SNT is
planning to introduce the latest ‘next-generation’ console and range of games in the
summer of 2015. Development of the new console is due to commence on January 1, 2015
and SNT is currently working out at what price the new console should be sold then.
The new console is expected to incur the following costs in the four years it will be
developed and commercialised:
2015 2016 2017 2018
Consoles manufactured and sold 10,000 12,000 11,100 3,000
R&D costs $950,000 $0 $0 $0
Marketing costs $230,000 $120,000 $20,000 $5,000
Production cost per console $450 $430 $290 $290
Warranty costs per console $30 $30 $40 $45
End of life costs $0 $0 $0 $125,000
Using lifecycle costing, what is the cost per console?
A $410.21
B $417.56
C $455.35
D $496.62

SNT is a Japanese electronics giant specialising in the production of game consoles. SNT is
planning to introduce the latest ‘next-generation’ console and range of games in the
summer of 2015. Development of the new console is due to commence on January 1, 2015
and SNT is currently working out at what price the new console should be sold then.
The new console is expected to incur the following costs in the four years it will be
developed and commercialised:
2015 2016 2017 2018
Consoles manufactured and sold 10,000 12,000 11,100 3,000
R&D costs $950,000 $0 $0 $0
Marketing costs $230,000 $120,000 $20,000 $5,000
Production cost per console $450 $430 $290 $290
Warranty costs per console $30 $30 $40 $45
End of life costs $0 $0 $0 $125,000
Market research has indicated that customers will be prepared to pay an average price of
$420 per console, but SNT’s Chief Executive believes this will not be sufficient to make
production worthwhile.
The Chief Executive has made the following statements:
(1) The cost per console, calculated using lifecycle costing principles, is higher than the
price customers are prepared to pay.
(2) More attention to R&D costs in 2015 could reduce warranty costs in later years.
Which of the above statements is/are true?
A (1) only
B (2) only
C Neither (1) nor (2)
D Both (1) and (2)

My answer is coming wrong to these questions. My total costs is coming less than what it should be.