ABS engineering decided to build and new factory to produce electrical parts for computer manufacturers. They will rent a small factory for 2,000dhs per month while utities will cost 500 per month, they had to pay 8000hs for municipality for water and electricity connection fees. On the other hand they will rent production equipment at a monthly cost of 5000hs they estimated the material cost per unit will be 20dhs, and the labor cost will be 10dhs per unit. They need to hire a manager and security for with a salary of 30,000 and 5,000dhs per month each. Advertising and promotion will cost cost them 3,500dhs per month Required 1- 2- Calculate the total Fixed cost- 3- Calculate the total vanable cost per unit- 4- If the machine max production capacity is 10000 units per month, what is the selling price they should set to break even monthly?
ABS engineering decided to build and new factory to produce electrical parts for computer manufacturers. They will rent a small factory for 2,000dhs per month while utities will cost 500 per month, they had to pay 8000hs for municipality for water and electricity connection fees. On the other hand they will rent production equipment at a monthly cost of 5000hs they estimated the material cost per unit will be 20dhs, and the labor cost will be 10dhs per unit. They need to hire a manager and security for with a salary of 30,000 and 5,000dhs per month each. Advertising and promotion will cost cost them 3,500dhs per month Required 1- 2- Calculate the total Fixed cost- 3- Calculate the total vanable cost per unit- 4- If the machine max production capacity is 10000 units per month, what is the selling price they should set to break even monthly?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:ABS engineering decided to build and new factory to produce electrical parts for computer manufacturers. They will rent a small factory for 2,000dhs per month while utities will cost
500dhs per month, they had to pay 8000hs for municipality for water and electricity connection fees. On the other hand they will rent production equipment at a monthly cost of
5,000hs they estimated the material cost per unit will be 20dhs, and the labor cost will be 10dhs per unit. They need to hire a manager and security for with a salary of 30,000 and
5,000dhs per month each. Advertising and promotion will cost cost them 3,500dhs per month
Required
1-
2- Calculate the total Fixed cost
3- Calculate the total variable cost per unit-
4- If the machine max production capacity is 10000 units per month, what is the selling price they should set to break even monthly?
5 if they to earn a profit equal to 10.000 per month, for how much he should sell the unit?
6 What is the fixed cost per unit at maximum production?
7- What is the total variable cost at maximum production?
8-If they set the selling price for BODHS on max production and managed to reduce the total fixed cost by 3% what is the profit increase percentages
9- If they set the selling price for 80DHS on max production and managed to reduce the total variable cost by 3% what is the profit increase percentage-
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