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c) A new product has the following cost structure: Manpower 2 person per unit assembly of the product Labour cost per person $7.00 Material cost

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c) A new product has the following cost structure: Manpower 2 person per unit assembly of the product Labour cost per person $7.00 Material cost $8.00/unit Scrap losses $2.00/unit Depreciation on equipment S5000 Factory expenses 5600 Sales and distribution overhead $4000 Delivery and warehouse cost $3000 Profit 50% per unit Based on the information above, perform the following: i Calculate the total variable cost, total fixed cost and sales price per unit. i. What is the condition for a break-even point, and find the break-even quantity? ii. If you are currently operating at losses by producing at half of the break-even quantity, asses other alternatives with financial justification from the viewpoints of labour and sale price. All fixed costs are maintained

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