Rudy Company Sells a Product for $450 Per Unit

Rudy Company sells a product for $450 per unit. Its market share is 25 percent. The marketing manager feels that the market share can be increased to 33 percent with a reduction in price to $390. The product is currently earning a profit of $72 per unit. The president of Rudy Company feels that the $72 profit per unit must be maintained.
-Refer to the figure.What would be the life-cycle income for Product AA if research and development costs and marketing costs are traced to each product?

A) $3,000
B) $5,000
C) $35,000
D) $100,000