David Happy has developed a new product that he is considering the production and selling of it. To proceed with this project, David will be renting a small building for $1,250 a month that will house production facilities. Utility cost of building is expected to be $400 per month. One major piece of equipment that will be used to manufacture the product will be rented for $600 a month. Material costs to make the product are estimated at $8 per unit. Monthly advertising costs for the product are estimated at $1,000. David will be using salespeople for selling the product. Sales commission is $4.00 per unit. David has rented a truck for delivery of the products to customer at $350 per month. David will be paying himself $5,000 per month as salary. David will be spending about 75% of his time for manufacturing the product; 15% for promotion and delivery of the product; and 10% for the management of the operation. David believes that he could produce and sell 2000 units per month.

48. How much is Davids total period costs per month?

49. What should be Davids minimum selling price per unit for its product? Hint: the price to breakeven.