= Homework: Chapter 14 Pricing Decisions Question 6, E14-24 (similar to) Part 1 of 8 HW Score: 9.48%, 1.14 of 12 points Points: 0 of 1 Save Next Gen is going to introduce a combination phone/tablet product. Design and testing will take 8 months. Next Gen expects to sell 25,000 units during the first 6 months of sales. Sales over the next 12 months are expected to be less robust at 19,000. And, sales in the final 6 months of the expected life cycle are expected to be 8,500. Next Gen is budgeting for this product as follows: (Click the icon to view the cost information.) Read the requirements. Requirement 1. If Next Gen prices the phone/tablets at $325 each, how much operating income will the company make over the product's life cycle? What is the operating income per unit? Begin by preparing the life cycle income statement in order to determine how much operating income the company will make over the product's life cycle. Projected Life Cycle Income Statement Variable costs: Total variable costs Fixed costs: Total fixed costs Life cycle operating income Clear all Check answer Help me solve this Etext pages Get more help Data table Months Type of Cost Total Fixed Cost for the Period Variable cost per Unit Months 0-8 Design costs $ 875,000 Months 9-14 Production $ 1,005,000 $62 per unit Marketing $ 780,000 Distribution $ 426,000 $4 per unit Months 15-26 Production 800,000 $52 per unit Marketing $ 1,320,000 Distribution $ 370,000 $2 per unit Months 27-32 Production 360,000 $52 per unit Marketing $ 440,000 Distribution $ 165,000 $0 per unit Ignore the time value of money. Print Done