For a vending machine project, the site cost=5,000 SR/month, material cost=0.5 SR/unit, and insurance cost 400 SR/month, the labor cost = 1,000 SR/month, unit price = 1 SR/unit, and electricity cost = 100 SR/month and = 0.1 SR/unit. a) Find the Unit Contribution and the Breakeven Quantity. b) Determine the Total Contribution and Total Profit at sales of Q=25,000 units.

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Cost of Production

In economic theory, production costs are the costs incurred by an industrial organization when it engineers a project or provides a service that generates revenue and benefits. Labor costs, raw materials, consumable manufacturing costs, and general overhead sum up, accounting for production costs. Total cost data is calculated by combining total direct costs of materials, labor costs, and total production costs.