Clark inc, expects to incur the following selected costs an a new product being planned for introduction early next.

Design an development costs of $100,000 that will be incurred this year.

Marketing costs of $50,000 to be incurred %50 this year %50 year

Manufacturing costs of $500,000 to be incurred next year.

In addition to external market factors, the pricing decision should be based on cost. The product cost that should be used is