CBT And Fu one Page 4 ofis Q2: An entrepreneur in Madinah city packages and selly premium sweets in the local market. The fixed costs of operating the start-up (i.e, new business for a month are $1.000. Each packaging requires materials that cost $4. Each package takes two hours to make, and the company pays the packaging workers $20 per hour. The workers are all on day to day basis. If they are absent or not working, they do not earn wages. The package sales in the wholesale market are $28 per package. (a) What is the Break-Even-Point (BEP) for sales of sweet boxes for the business? Answer: (b) The start-up business expects to sell 1000 packets of sweets per month. The start-up business h the opportunity to rent a packaging machine. As a result, it will increase the total fixed cost c operating the workshop per month to $6,000. Using the packaging machine would reduce the labor time to one and half hours per package. The workers still get paid $20 per hour. How mu profit would the business make each month from selling sweet packets? half Answer: (c) How much profit would the business make each month from selling sweet packets, assuming that the packaging machine is not with rental option