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Hi – the formula for lifecycle costing is one of the simpler ones of this paper.
You take total costs from all stages of the product life (eg research and design costs, production costs, marketing costs and future disposal costs) and divide this total by the number of units that you will produce during the whole life of the product.
This will give you lifecycle cost per unit.
To summarise:
Lifecycle cost per unit = Total costs [All costs incurred during life of product] / Total number of units produced during life time]
Many Thanks
Cath
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