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| Lumsden has recently completed the development and testing of a new product, the Kennedy. The development of the product has cost $300,000 and $50,000 has been spent on research. The company has also bought a machine to produce the new product costing $75,000. The production machine is capable of producing 1,500 units of Kennedy per month and is not expected to have a residual value. The company has decided that the unit selling prices it will charge will change with the cumulative numbers of units sold as follows.   Required (c) Calculate the profits expected in each stage of the lifecycle and in total from the sale of Kennedys. (7 marks) |