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 utilities will cost 500dhs per manth. they had to pay 800Dhs for municipality for water and electricity connection fees. On the other hand they will rent production equipment at a morthly cost of 4.000dhs. they estimated the material cost per unit will be 20dhs, and the labor cost will be 15dhs 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 wll cost cost them 3,500dhs per month. Required:
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 utilities will cost 500dhs per manth. they had to pay 800Dhs for municipality for water and electricity connection fees. On the other hand they will rent production equipment at a morthly cost of 4.000dhs. they estimated the material cost per unit will be 20dhs, and the labor cost will be 15dhs 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 wll cost cost them 3,500dhs per month. Required:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![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 utilities will cost 500dhs per manth. they had to pay 800Dhs for municipality for water and electricity connection fees. On the other
hand they will rent production equipment at a monthly cost of 4.000dhs. they estimated the material cost per unit will be 20dhs, and the labor cost will
be 15dhs per unit. They need to hire a manager and security for with a salary of 30.000 and 5000dhs per manth each. Advertising and promotion will
cost cost them 3,500dhs per month.
Required:
2- Calculate the total Foxed cost 45000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3fc5a13a-d753-4870-bc1f-827499ea0655%2Fc428a974-525a-465b-8b86-fd5a39c35bdf%2Fa79rwf_processed.png&w=3840&q=75)
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 utilities will cost 500dhs per manth. they had to pay 800Dhs for municipality for water and electricity connection fees. On the other
hand they will rent production equipment at a monthly cost of 4.000dhs. they estimated the material cost per unit will be 20dhs, and the labor cost will
be 15dhs per unit. They need to hire a manager and security for with a salary of 30.000 and 5000dhs per manth each. Advertising and promotion will
cost cost them 3,500dhs per month.
Required:
2- Calculate the total Foxed cost 45000
![What is thve fixed cost per unit at maximum productiont45
What is the total variable cost at maximum production 350000
f they set the selling price for 8ODHS on max production and managed to reduce the total foxed cost by what is the profit increase percentage
0.39%
9they set the seling price for 80DHS on max production and managed to reduce the total variable cost by 3 what is the profit increase percentage
259%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3fc5a13a-d753-4870-bc1f-827499ea0655%2Fc428a974-525a-465b-8b86-fd5a39c35bdf%2Fjo1hski_processed.png&w=3840&q=75)
Transcribed Image Text:What is thve fixed cost per unit at maximum productiont45
What is the total variable cost at maximum production 350000
f they set the selling price for 8ODHS on max production and managed to reduce the total foxed cost by what is the profit increase percentage
0.39%
9they set the seling price for 80DHS on max production and managed to reduce the total variable cost by 3 what is the profit increase percentage
259%
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