ABS engineering decided to build a new factory to produce electrical parts for computer manufacturers. They will rent a small factory for 2000dhs per month
ABS engineering decided to build a new factory to produce electrical parts for computer manufacturers. They will rent a small factory for 2000dhs per month while utilities will cost 500dns per month. They had to pay 800Ohs to the municipality for water and electricity connection fees. On the other hand, they will rent production equipment at a monthly cost of 4,000dhs, they estimated the material cost per unit would be 20dhs, and the labour cost will be 15dhs per unit. They need to hire a manager and security with a salary of 30,000 and 5,000dhs per month each, Advertising and promotion will cost them 3,500dhs per month. Required: 2- Calculate the total Fixed cost= 3- Calculate the total variable cost per unit= 4- If the machine's max production capacity is 10010 units per month, what is the selling price they should set to break even monthly?s 5- If they to earn a profit equal to 10,000 per month, how much should they sell the unit?= 6- What is the foted cost per unit at maximum production? 7- What Is the total variable cost at maximum production?= B- IIf they set the selling price for BODHS on max production and managed to reduce the total fixed cost by 3%, what is the profit increase percentages 9: if they set the selling price for 80DHS on max production and managed to reduce the total variable cost by 3%%, what is the profit increase percentage
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