Sherbet Manufacturing Is Considering Producing a New Product

Sherbet Manufacturing is considering producing a new product. Sherbet Manufacturing expects that it will sell 2,000 units over the product's expected 4- year life. Variable production costs and variable selling costs are estimated at $42 and $16 per unit, respectively. Annual fixed production and fixed selling costs are estimated at $15,000 and $5,000, respectively. _ is the total fixed cost over the product life cycle.

A) $80,000
B) $464,000
C) $20,000
D) $116,000