curred:\rRequired:\rApplyingtheprinciplesofIifecyclecosting,calculatethetotalexpectedprofitforShoe\rCoforthetwo-yearperiod.\r(10marks)\r9:;<\rTotaIsaIesrevenue=(280,000x$55)+(420,000x$45)=$15,4m+18 9m=$3403m.NoteTheexpectedprofitha\rsbeencaIculatedusinglifecycIecostingnotreIevantcosting.Hence,the$20,OOOsalarycostincIudedinp\ratentcostsshouldbeincIudedintheIifecycIecost.Similarly,theopportunitycostof$800,000isnotincI\rudedusinglifecycIecostingwhereasifreIevantcostingwasbeingusedtodecideonaparticuIarcourseofac\rtion,theopportunitycostwouIdbeincIuded.Working1Expectedmarketingcostinyear1:(0,2x$2 2m)+(0\r,5x$2,6m)+(0 3x$2,9m)=$2,61mExpectedmarketingcostyear2:(0 3x$1-8m)+(0 4x$2 1m)+(0 EvaluationWarning:ThedocumentwascreatedwithSpire.PDFfor.NET.\r3x$2,3m)=$2,07mTotaIexpectedmarketingcost=$4*68m
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