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Good evening sir,
I have a question on life cycle costing in the BPP q56.
I would like to know how the production and customer services costs is worked out?
The total cost each year is calculated by multiplying the number of units by the cost per unit.
They are then all added together to get the total cost over the entire life.So for the production costs, the total is (5,000 x $80) + (10,000 x $40) + (25,000 x $30) + (10,000 x $30) = $1,850,000.
It is the same approach for the customer services.
Thank you so much sir.
You always feel like the answer is right in your face. After you’ve received help lol.
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