Summer 2017-2018, Dr. Fawaz Abdulmalek Homework Assignment One Due Date: Sunday, June 3, 2018 1. Natural I Taste is a new startup company that is specialized in water purifying industry has the following costs: Safety instrument- $3,000 2Materials waste $1,000 Electricity cost in offices $500 Periodic replacement parts after 10,000,bottles produced $750 Cost of equipment and installation s50,000 Minerals used at purification $20,000 lerical Salaries -$4,500 ?Material used in Bottles-$1,500 Administrative expenses $2,900 Labor used in production $11,500 ed manufacturing costs used in production $10,500 a. Categorize the costs given into fixed or variable costs, recurring or nonrecurring costs and direct or indirect costs? What is the total fixed cost, the total variable cost and total direct cost in dollars? b. 2. Given that price per unit (S)- 2,300 - D/20, where D is the annual demand (units) and total cost per year can be approximated by $2,000 +3D a. What level of annual demand maximizes profit? How do you know you haven' minimized profit?E What is the maximum profit (S) per year? b