1.Assume that you manage the factory that produces high-performance bicycles. Assume that the cost of bicycle raw materials, components, raw materials and energy costs (variable costs) are$40, 000 each month. Your total fixed costs being$500, 000. Assume you employ10 workersand the money (or nominal) wage rateis $30 per hour for each worker,and labour productivity is0.25(i.e. one worker hour produces 0.25 units of output; in other words, one quarter of a bicycle per hour per worker or one bicycle per four hours per worker). Assume yourcurrent output is 400bicycles per month so the total wage bill is$48, 000per month. The firm has a30% mark-up.Given the information provided or you have, what should be the price of this product at the output of 400 bicycles per month?

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a) Please write a general expression for determining the price of a product.

b ) Use the expression for pricing that you wrote above to calculate what the price of each bicycle should be, given the information that has been provided.

c)The questions tells us the wage bill for your factory is $48, 000 per month.

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i.Can you also work the wage bill using the information about productivity from the question?

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ii. Also work out how many hours on average each worker works per month and what each worker's average wage is per month.