Shoe Co has spent $5·6m developing the Smart Shoe. The time spent on this development meant that the company missed out on the opportunity of earning an estimated $800,000 contribution from the sale of another product.
The company has applied for and been granted a ten-year patent for the technology, although it must be renewed each year at a cost of $200,000. The costs of the patent application were $500,000, which included $20,000 for the salary costs of Shoe Co’s lawyer, who is a permanent employee of the company and was responsible for preparing the application.
The following information is also available for the next two years:
Shoe Co is still negotiating with marketing companies with regard to its advertising campaign, so is uncertain as to what the total marketing costs will be each year. However, the following information is available as regards the probabilities of the range of costs which are likely to be incurred:
Required:
Applying the principles of life cycle costing, calculate the total expected profit for Shoe Co for the two-year period.
(10 marks)
第4题
A.A doctor.
B.A friend.
C.A shoe salesman.
D.The woman's husband.
第5题
A.shoe store
B.shoes store
C.shoe’s store
D.shoes’s store
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