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EnvironTech Engineering in Washington is making an air quality simulator device for the Afroeuroasian market. The following costs for the product have been compiled. Item
EnvironTech Engineering in Washington is making an air quality simulator device for the Afroeuroasian market. The following costs for the product have been compiled. Item Cost Selling price (1) $250/unit Materials and purchased parts cost $24/unit Direct labor cost 2 hrs at $26 per hour Indirect labor cost 75% of direct labor cost per hour Operating and maintenance (O & M) cost per unit S15 Fixed cost $1,800,000 Given that the variable cost per unit (v) includes direct and indirect labor costs, operating and maintenance cost, the overhead expenses (which is charged at 200% of O&M), and the cost of materials and purchased parts, given as the total number of quantity produced in a year: a) Write the profit relation for the year. b) Calculate the annual breakeven quantity for this product. c) Determine the total profit and profit per unit if 150% of the annual breakeven quantity are sold d) To reduce the annual breakeven quantity to 18,000 units, what should be the selling price
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