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Hi John,
Working on Chapter 3 example 1 Lifecycle costs, im calculating total lifecycle costs (50 000x 6) + 60 000 + 30 000 = $390 000. How come they saying 50 000 x 6 shouldnt it be 5 becuase the product would last for 5 years? Im seeing this on all lifecycle questions.
Thanks,
Bronwyn.50,000 is the total demand over the 5 years (1 year at 2000 and 4 years at 12000).
6 is the cost per unit!
So 50000 x 6 is the total production cost.
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