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Based on the demand identified in part (b), what is the breakeven selling price per unit? Problem A large company in the communication and publishing

Based on the demand identified in part (b), what is the breakeven selling price per unit? image text in transcribed
Problem A large company in the communication and publishing industry has quantified the relationship between the price of one of its products and the demand for this product as: Price = 150 -0.01 * Demand for an annual printing of this particular product. The company is planning its productions for the year 2021. The company is considering the production of a certain number of 1,750 pages units. In 2019 the company had produced 4 similar units but with fewer pages count per unit (800; 920; 1,300; and 1,550), and the material costs associated with those 4 units are (13.80 JD, 14.93 JD, 16.50 JD, and 18.40 JD respectively). The material cost index values were 211 for 2018, 225 for 2019, 286 for 2020, and 320 for 2021. The fixed costs per year (i.e., per printing) - 65,000 JD, and the variable cost will consist of the material cost and the labor cost. The company started to produce 1,750 pages unit in 2021, and the project management team observed that 7.50 labor hours were needed to produce the first unit; however, the number of labor hours per unit decreased thereafter at an 83% learning slope. Use the 10th unit as the basis for estimating the average labor hours per unit and assume the 2021 average labor wage is 4.0 JD per hour

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