A company's variable cost of producing special sensors varies according to the production level per year. The variable cost is SR 400 per sensor from 0 to 500 sensors. Above this level, the variable cost is different. At this time, the company is producing 500 sensors per year, and the average cost per sensor is SR 1,000. Next year, it expects to produce 1,000 sensors, and the projected average cost for all 1,000 sensors will be SR 1,500 per sensor.

1. What is the current fixed cost? (unit: SR) a) 200,000b) 150,000c) 300,000d) 250,000

2. If the fixed cost and variable cost rates hold constant next year, the average cost of the 800 sensor production is closet to which of the following? (unit: SR) a) 1,563b) 1,538c) 1,575d) 1,550

3. A manufacturer of precision cutting tools has the capacity to make 1,000,000 cutting tools per year. Each sells for SR 15. The variable cost per unit to produce the tools is SR 10 each. Annual fixed costs for the manufacturer are SR 350,000. Then the break even point in the production level is closest to: a) 70,000b) 17,500c) 35,000d) 23,333

4. Product X is sold for SR 500 per unit. The total cost (the total of all fixed and variable costs) of production per year, including capital recovery and a return, is given by the expressionTC = 0.03n3 - 600n + 45000when n is the number of units sold, determine the closest value of n that maximizes profit. a) 125b) 120c) 115d) 111