Question: Matheson Electronics developed a new electronic device it believes will have broad market appeal. The company gathered the following estimates:The equipment needed to make the

Matheson Electronics developed a new electronic device it believes will have broad market appeal. The company gathered the following estimates:The equipment needed to make the device would cost $168,000 and have a six-year useful life with a salvage value of $12,000.Sales in units over the next six years are projected to be as follows:YearSales in Units18,000213,000315,0004617,000Production and sales of the device would require working capital of $48,000 to be released at the end of the projects life.The device would sell for $30 each with a variable cost of $15 per unit.Fixed costs for salaries, maintenance, property taxes, insurance, and straight-line depreciation on the equipment would total $132,000 per year. (Depreciation is based on cost less salvage value.)To gain rapid entry into the market, the company would invest heavily in advertising as follows:YearAmount of Yearly Advertising12$ 46,0003$ 57,00046$ 47,000The companys required rate of return is 7%. What is the incrememental fixed expenses for each year for the next six years?

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