1. A business produces one product which requires the following inputs: Sales in unit 5.000.000 Selling price $0.50 Var.cost $0.30 Fixed cost $900.000.00 a. What is the number of units that the company needs to produce and sell to break-even? (15 points)

2. A business produces one product which requires the following inputs: Direct Materials 6 kg at $ 4,80 per kg Direct labour 4 hour at $7 per hour Building cost $18.000 per period Leased machine $600 for every 600 units (each machine has a capacity of 600 units) Store Cost $3.000 per period plus $3 per unit

a. What is the total cost of production and the cost per unit at each of the following production levels: (20 points) -1000 units -2000 units

b. Explain why the cost per unit is different at each level of production (10 points)