IF THE TARGET LIFE CYCLE PROFIT MARGIN IS 25%, HOW MUCH IS THE TOTAL MAXIMUM COST THAT DELAWARE CAN INCUR OVER THE THREE-YEAR MATURITY PHASE?

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Delaware Carnival Inc. will be offering a new ride in its amusement park. It has identified the following sales and costs from its introduction phase to the growth stages. Tickets to be sold Price per unit COSTS Research and Development Year 0 Year 1 72,000 Year 2 240,000 - P 200 P 200 P 8,000,000 TOTAL 312,000 200 P 8,000,000 Ride designing and prototyping Ride equipment manufacturing and safety trial runs Marketing Repairs and maintenance Utilities Customer Support Cost of printing tickets Incremental Administrative TOTAL COSTS 24,000,000 24,000,000 10,000,000 10,000,000 8,000,000 4,000,000 P 8,000,000 3,000,000 P 4,000,000 20,000,000 2,000,000 9,000,000 360,000 1,200,000 1,560,000 1,440,000 4,800,000 6,240,000 360,000 1,200,000 1,560,000 500,000 500,000 1,500,000 500,000 P 54,500,000 P 13,660,000 P 13,700,000 P 81,860,000 Its maturity stage will span a period of three years where the entity will be forced to lower its prices to P180 per ticket to maintain annual sales of 300,000. Its decline stage will provide sales of P18,000,000 (100,000 tickets x P180) and total costs of P15,000,000. If the target life cycle profit margin is 25%, how much is the total maximum cost that Delaware can incur over the three-year maturity phase? Delaware Carnival Inc. will be offering a new ride in its amusement park. It has identified the following sales and costs from its introduction phase to the growth stages. Tickets to be sold Price per unit COSTS Research and Development Year 0 Year 1 72,000 Year 2 240,000 - P 200 P 200 P 8,000,000 TOTAL 312,000 200 P 8,000,000 Ride designing and prototyping Ride equipment manufacturing and safety trial runs Marketing Repairs and maintenance Utilities Customer Support Cost of printing tickets Incremental Administrative TOTAL COSTS 24,000,000 24,000,000 10,000,000 10,000,000 8,000,000 4,000,000 P 8,000,000 3,000,000 P 4,000,000 20,000,000 2,000,000 9,000,000 360,000 1,200,000 1,560,000 1,440,000 4,800,000 6,240,000 360,000 1,200,000 1,560,000 500,000 500,000 1,500,000 500,000 P 54,500,000 P 13,660,000 P 13,700,000 P 81,860,000 Its maturity stage will span a period of three years where the entity will be forced to lower its prices to P180 per ticket to maintain annual sales of 300,000. Its decline stage will provide sales of P18,000,000 (100,000 tickets x P180) and total costs of P15,000,000. If the target life cycle profit margin is 25%, how much is the total maximum cost that Delaware can incur over the three-year maturity phase?