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Q1. [15 marks] A company manufactures a product that is used in home appliances. The factory building is rented for $1800 per month and the
Q1. [15 marks] A company manufactures a product that is used in home appliances. The factory building is rented for $1800 per month and the material cost is $50 per unit. The labor cost is $10/hour. An 75% learning curve applies to labor, and it takes 10 hours to complete the first unit. The company decides to use the time of the 15th unit as a standard for cost estimation. If the selling price per unit is P= $600 0.04D, find the following: a. [3 marks] The value of the variable cost per unit cv(round the final answer for Cv to the nearest integer). b. (5 marks] The optimum number of units, to be produced in a month, to maximize revenue. c. 15 marks] The optimum number of units, to be produced in a month, to maximize profit
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