1a. A guy in a 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 hook each new customer. What would be the effect on this months expenses if the salesperson added 55 new customers this month?

1b. 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 8 hour day and there are 20 workdays in a month. The companys 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?

1c. Facility rent is $2,000 per month, accounting services cost $2,600 per month, insurance is $1,100 per month, and utilities such as phone and electricity cost $550 per month. The manager is paid $89,000 per year, gets benefits worth $6,500 per year, and the Social Security contribution is 7.65 percent. Given this information, what is the amount of annual fixed expense that this company has to pay? 1d.Given the information in problem 1c, if the profit contribution after variable expenses is $125 per unit, is the firm making a profit if it produces and sells 1,000 units per year? (Explain) 1e. If a firms total material cost increases by $150,000 when the level of production increases by 7,500 units, what is the variable cost on a per unit basis?