Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Khaled has developed a new technology device that is so exciting he is considering quitting his job in order to produce and market it on

image text in transcribed
Khaled has developed a new technology device that is so exciting he is considering quitting his job in order to produce and market it on a large scale basis. Khaled will rent a small factory for 5,000dhs per month for production purposes. Utilities will cost 500dhs per month, Khaled has already taken an Industrial design course at Dubai Men's College to help prepare for this venture. The course cost Boodhs, Khaled will rent production equipment at a monthly cost of 4,000dhs. He estimates the material cost per unit will be 15dhs, and the labor cost will be 15dhs per unit. He will hire workers and spend his time promoting the product. To do this he will quit his job which pays 30,000dhs per month. Advertising and promotion will cost 3.Soodhs per month Required: 1. 2. Calculate the total Fixed cost- 3. Calculate the total variable cost per unit- 4- If the machine max production capacity is 1000 units per month what is the selling price he should set to break even monthly 5. If Khaled to earn a profit equal to his current salary, for how much he should sell the unit- 6- What is the fixed cost per unit for maximum production? 7. What is the total variable cost for maximum production? B- Ulf Khalid set the selling price for 70DHS on max production and managed to reduce the total fixed cost by 2% what is the profit increase percentage 9. If Khalid set the selling price for 70DHS on max production and managed to reduce the total variable cost by 2% what is the profit increase percentage

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

EBay Sales Tracker Quick And Easy Bookkeeping System

Authors: Queen Thrift

1st Edition

B08KJ5FJND, 979-8692592774

More Books

Students also viewed these Accounting questions

Question

Will formal performance reviews become obsolete? Why or why not?

Answered: 1 week ago