Life cycle costing question

I am afraid that this is another mistake by Kaplan. They have issued a correction, but that is wrong as well!! In fact, the question is impossible. If you ignore the last sentence, then the lifecycle cost is $18.65. With the last sentence, it does increase to 19.40, but this ignores the fact that the manufacturing costs could be reduced - they do not say how much the manufacturing cost may be reduced by!!

Hello John Moffat, Please could you explain the benefits of life cycle costing for pricing, performance managment and decision making. This is part of a life cycle costing past question for December 2012. What also is the likelyhood for such a question to occur in the exam? or questions testing lifecycle

Lifecycle costing was not asked in December 2012 (although it was in December 2011). Why don't you read the examiners own answer? You cannot expect me to write better than she writes! Questions testing lifecycle costing are just as likely as all the other topics (especially now there are MCQ's)

Ok, noted. Many thanks for your response

You are welcome :-)

Dear Mr. John, Could you please give me the results of Example 1 (question a,b,c page 11, chapter 3) in the opentuition ACCA course note? Thank you very much in advance.

Can I suggest that you look at the answers at the back of the Course Notes? (You can find which page from the contents index).

Oh, I have not yet realized it. Thank you very much for your prompt reply and all your support.

You are welcome :-)

Hlo john Moffat Can you tell me why the 40% product cost isnot added ? to $19.4.per unit ??