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1. If a product can be sold for $2,000 per unit, the variable cost per unit is $650, and fixed costs are $2 million, how
1. If a product can be sold for $2,000 per unit, the variable cost per unit is $650, and fixed costs are $2 million, how many units must be produced and sold before the firm can break even? 2. If an employee has a salary of $75,000 per year, benefits cost the company $7,200 per employee per year, and the employer's share of the Social Security tax is 7.65 percent, what is the direct cost per year for this employee? 3. A salesperson in a recurring revenue firm is paid the equivalent of 2 months' sales revenue for each new customer added. The charge for the service is $120 per month, and providing the service costs the company $50 per month per customer. It costs $25 to initially hook up each new customer. What would be the effect on this month's expenses if the salesperson added fifty-five new customers this month? 4. An assembly line can produce 125 units per hour and the material cost is $15 per unit. A single employee, who is paid $22 per hour, can operate the assembly line. The employee works an eight-hour day and there are twenty workdays in a month. The company's contribution to Social Security is 7.65 percent of employee pay, and benefits cost the company about $565 per month per employee. Maintenance on the assembly line costs $1,000 per month. What is the total cost of producing the product for one month
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