The total cost to produce 10,000 units is SAR 880000, and the total cost to produce 15,000 units is

SAR 1,260000.

Required:

a. Develop a cost function for this cost.

b. Estimate the total cost to produce 18,000 units.

Mohamad Co. sells product P at a price of SR 60 a unit. The per-unit cost data are: direct materials

SR 19, direct labor SR 20, and overhead SR10 (20% fixed and 80% variable). Mohamad has

sufficient capacity to accept a special order for 40,000 units just received.