Reference no: EM132992139

Question - Car Manufacturer, ETC, spent 2017 researching the use of solar panels to power motor vehicles and developed this technology for production of a unique model motor vehicle, SolaCar, during 2018. SolaCars are powered totally via solar panels. Production of SolaCars commenced in 2019 and sales to date have been positive. ETC believe sales in the future will also be positive. During 2019, 2,000 SolaCars were sold for $35,000 each and each car cost $27,000 to produce. Sales for 2020 are expected to be 3,000 and are expected to be 3,500 in 2021. At this stage ETC wish to keep the selling price at SolaCars at $35,000 each.

$15,000,000 research costs were expensed in 2017 and development costs of $40,000,000 were capitalised in 2018. During 2019 $1,500,000 was spent on marketing and SolaCars have budgeted to spend a further $400,000 during 2020 and $300,000 for ongoing marketing. Customer support and warranty repairs during 2019 were $2,000,000 and these costs are expected to rise to $3,000,000 in 2020 and $3,500,000 in 2021.

Required - Prepare life cycle budget for periods 2017 - 2021?