a) Find the Unit Contribution and the Breakeven Quantity. b) Determine the Total Contribution and Total Profit at sales of Q =15,000 unit.

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Problem (1): For a vending machine project, the site cost = 12,000 SR/month, material cost
= 1 SR/unit, and insurance cost = 500 SR/month, the labor cost = 1,500 SR/month, unit price
- 3 SR per unit, and electricity cost = 1000 SR/ month and = 0.5 SR/unit.
a) Find the Unit Contribution and the Breakeven Quantity.
b) Determine the Total Contribution and Total Profit at sales of Q=15,000 unit.
Transcribed Image Text:Problem (1): For a vending machine project, the site cost = 12,000 SR/month, material cost = 1 SR/unit, and insurance cost = 500 SR/month, the labor cost = 1,500 SR/month, unit price - 3 SR per unit, and electricity cost = 1000 SR/ month and = 0.5 SR/unit. a) Find the Unit Contribution and the Breakeven Quantity. b) Determine the Total Contribution and Total Profit at sales of Q=15,000 unit.
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