QUESTION $4(20$ Marks$)$

$4\mathrm{.}1.$ Study the information provided below and answer the following question. $(10$ Marks$)$

The information presented below relates to the six$-$year life$-$cycle budget for Roodepoort Manufacturing &

Suppliers $($RM&S$)$ for three alternative sales packages for a bundle of school laptops available for sale to

wholesalers.

INFORMATION

Alternative pricing and production packages A B C

Sales $($units$)500040002500$

Selling price per package, R $400480600$

Year $1$ and $2$: Total fixed costs, R

Research & Development $($R&D$)250000$

Design $150000$

Year $3$ to $6$: Total fixed costs, R Variable cost per package

Production costs $100000250$

Marketing and sales costs $70000230$

Distribution costs $50000150$

After$-$sales services costs $80000300$

REQUIRED:

Using a table, calculate the life$-$cycle operating incomes for each of the three $(3)$ sales packages.

$4\mathrm{.}2.$