The Myles Time Corporation is starting up a new division and is evaluating its product lines. Information for one new product, working stopwatches,…

The Myles Time Corporation is starting up a new division and is evaluating its product lines. Information for one new product, working stopwatches, is as follows:Four times each year (once a quarter), a new stopwatch model will be put into production. Each new model will require $1,150 in setup costs.The working stopwatches product line incurred $43,859 in development costs and is expected to be produced over the next three years.Direct costs of producing the models average $1.25 each.Indirect manufacturing costs are estimated at $82,000 per year.Customer service expenses average $0.05 per watch.Current sales are expected to be 3,700 units of each model. Each watch sells for $9.95.Sales units equal production units each year.What is the estimated life-cycle operating income for the first year? No word count or format needed……

Quarter 1Sales(Units)Sale Value(a) Quarter 2 3700 Quarter 3 3700 Quarter 4 3700 3700 $ 36,815.00 $ 36,815.00 $ 36,815.00 $ 36,815.00 Direct Cost $ 4,625.00 $ 4,625.00 $ 4,625.00 $ 4,625.00…

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