Question 4 A civil engineer has been promoted to manager of engineered public systems. One of the products is an emergency intercept pump for potable water. If the tested water quality or volume varies by a preset percentage. The pump automatically switches to preselected options of treatments or water sources. The manufacturing process for the pump had the following fixed and variable costs over a 1-year-period. Fixed Cost Administrative salaries and benefits 20% of equipment cost Space Utilities 1/3 of Computers cost 30,000$ 350,000$ 100,000$ 55,000$ 150,000$ Variable cost per unit Materials 2,500$ Labor 200$ Indirect labor 2,000$ Subcontractors 800$ 1- Determine the minimum revenue per unit to breakeven at the current production volume of 5000 units per year. 2- If selling internationally and to large corporations is pursued, and increased production of 3000 additional units will be necessary. Determine the revenue per unit required if a profit goal of 500,000$ is set for the entire product line. Assume the cost estimates above remain the same. Solution