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?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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