This paper circulates around the core theme of Grace Greeting Cards Incorporated is starting a new business venture and is in the process of evaluating its product lines. Information for one new product, traditional parchment grade cards, is as follows: together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
Grace Greeting Cards Incorporated is starting a new business venture
and is in the process of evaluating its product lines. Information for
one new product, traditional parchment grade cards, is as follows:
%u2219 For 16 times each year, a new card design will be put into production. Each new design will require $200 in setup costs.
%u2219 The parchment grade card product line incurred $75,000 in
development costs and is expected to be produced over the next four
years.
%u2219 Direct costs of producing the designs average $0.50 each.
%u2219 Indirect manufacturing costs are estimated at $50,000 per year.
%u2219 Customer service expenses average $0.10 per card.
%u2219 Sales are expected to be 2,500 units of each card design. Each card sells for $3.50.
%u2219 Sales units equal production units each year.
What is the total estimated life-cycle operating income?
