Jane has developed a new product that she has decided to produce and market. To

proceed with this project, Jane will quit her present job, which pays $$3,600$ a month. To

proceed with this project, Jane will be renting a small building to rent for $$1,600$ a month

that will house production facilities. One major piece of equipment that will be used to

manufacture the product will be rented to $$750$ a month. Jane purchased all of the other

needed tools for $$7,200$ which will last for two years $($depreciation will be $$300$ per

month$).$

Jane will be using salespeople for selling the product. Sales commission is $$3\mathrm{.}00$ per

unit. Jane has rented a truck for delivery of the products to customer at $$600$ per month.

Utility cost of building is expected to be $$500$ per month. Material costs to make the

product are estimated at $$12$ per unit. Monthly advertising costs for the product are

estimated at $$1,000.$ Jane will be paying herself $$5,000$ per month as salary. Jane will

be devotion $80\%$ of her time for manufacturing the product and $20\%$ for marketing the

product. Jane believes that she could produce and sell $2500$ units per month.

Compute and provide the answer to the following questions:

Total Fixed Cost Per Month:

Variable Cost Per Unit $($Rounded to $2$ decimal points$)$:

The minimum selling price per unit in order to breakeven $($Rounded to $2$ decimal

points$)$:

Jane is planning to sell each unit at $$22$ per unit. The amount of profit per unit

$($Rounded to $2$ decimal points$)$:

Jane is planning to sell each unit at a price of $$22$ per unit. If Jane increases

production per month by $500$ units to total of $3000$ units, the amount of profit per

unit would be: