Question 3 (15 marks) Dublin chips manufactures computer chips. The Company is in the process of developing a new chip that is expected to have a total life of 5 years. The company is planning to start sales in Year 2, with 10,000 units produced and sold per year at a selling price of $165 per unit. The company expects to find efficiencies in production and customer service costs and hopes to reduce costs in Year 3 to 5. Cost estimates are as follows: . . o Year 1 o R&D Costs $995,000 Year 2 R&D Costs $345,000 o Productions costs - $300,000 fixed costs plus $25 variable cost per unit o Marketing costs - $150,000 fixed costs o Customer service costs - $80,000 fixed costs plus $10 variable cost per unit Year 3 to 5 Production costs - $245,000 fixed costs plus $20 variable cost per unit o Marketing costs - $150,000 fixed costs Customer service costs - $60,000 fixed costs plus $7 variable cost per unit Required Calculate the operating income (loss) over the life of the product . O O