Question 2: Managing posts: ABM and Life-cycle posting [25 marks] Padma skin care limited produces environmentally friendly skin care products for its local and international market. The design department is currently working on two potential product lines: Nature (Slow and Daily Shine. Both product lines are estimated to have a life cycle of three years - one year of design and development and two years on the retail market. The marketing department is keen to introduce both. as they may complement to each other, however, the company may not have enough capacity to produce both. The company accountant reviewed the budget estimates for both of the product lines and estimated their protability for each year in the retail market as follows: m ma- 53.67am 59,525,000. ammo After receiving the protability statement from the company's accountant, Kate Taylor, the marketing manager of the company, comments that Nature Glow is the more profitable product and that perhaps cost- cutting measures should be applied to Daily Shine. However, the company accountant is concerned about some of the other costs he has uncovered. For both products, he has gured out that the total design and development costs in year 1 are $1,200,000 and the total selling expenses are $200,000 per year for the year 2 and 3. Moreover, he has pointed out that both the design and development and setting expenses are substantially higher for Nature Glow because it is relatively a new product. Kate has strongly supported development of the new product, including the high selling and design and development expenses. She has assured senior managers that the Nature Glow investment will pay off in improved profits for the firm