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1.1.If Volt Co sets a price to earn an operating margin of 40% over the life of a wind station, what will be the total lifetime profit per station (to the nearest $m)?
A $35m
B $408m
C $560m
D $933m
2.Which of the following are benefits of life-cycle costing for Volt Co?
(1) It facilitates the designing out of costs at the product development stage
(2) It can encourage better control of operating costs over the life cycle
(3) It gives a better understanding of the causes of overhead costs
(4) It provides useful data for short-term decision-making
A 1, 2 and 3
B 1 and 2 only
C 1 and 4
D 2, 3 and 4
