1.An assembly line can produce 120 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 the benefits cost the company about $565 per month per employee. Maintenance on the assembly line costs $1000 per month. What is the total cost of producing the product for one month?

2.Facility rent is $2,200 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?

3.Given the information in problem 5, 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?

4.If a product has variable costs of $50 per unit, fixed costs of $100,000 and revenue of $65 per unit, would it be possible for this firm to achieve a 22 percent rate of return on an investment of $2.5 million at a sales level of 2,000 units?