ABS engineering decided to build and new factory to produce electrical parts for computer manufacturers. They wll rent a small factory for 2,000dhs per month while utilites will cost 500dhs per month, they had to pay 800Dhs for municipality for water and electricity connection fees. On the other hand they will rent production egipment at a monthly cost of 4,000dhs. they estirmated the material cost per unit will be 20dhs, and the labor cost will be 15dhs per unit. They need to hire a manager and security for with a salary of 30,000 and 500odhs per month each. Advertising and promotion will cost cost them 15oodhs per month. Required Calculate the total Fed cost Cakte the total variable cost per unit- the machine mar production capacity is 10000 units per month, what the selng prce they should set to break even monthly- t they to earn a profit equel to 10.000 per month for how much he should sel the unit What is the ftred cost per unit at maximum production- What is the total vanable cost at maximum production
ABS engineering decided to build and new factory to produce electrical parts for computer manufacturers. They wll rent a small factory for 2,000dhs per month while utilites will cost 500dhs per month, they had to pay 800Dhs for municipality for water and electricity connection fees. On the other hand they will rent production egipment at a monthly cost of 4,000dhs. they estirmated the material cost per unit will be 20dhs, and the labor cost will be 15dhs per unit. They need to hire a manager and security for with a salary of 30,000 and 500odhs per month each. Advertising and promotion will cost cost them 15oodhs per month. Required Calculate the total Fed cost Cakte the total variable cost per unit- the machine mar production capacity is 10000 units per month, what the selng prce they should set to break even monthly- t they to earn a profit equel to 10.000 per month for how much he should sel the unit What is the ftred cost per unit at maximum production- What is the total vanable cost at maximum production
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 8SQP
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Question
please answer first four subparts
Transcribed Image Text:ABS engineering decided to build and new factory to produce electrical parts for computer manufacturers. They will rent a small factory for 2,000d
per month while utilities will cost 500dhs per month, they had to pay 800Dhs for municipality for water and electricity connection fees. On the other
hand they will rent production equipment at a monthly cost of 4,000dhs. they estimated the material cost per unit will be 20dhs, and the labor cost will
be 15dhs per unit. They need to hire a manager and security for with a salary of 10,000 and 5.000dhs per month each. Advertising and promotion will
cost cost them 1500dhs per month.
Required
2 Calculate the total Fiked cost-
Calate the total variable cost per unit-
the machine mar production capacity is 10000 units per month, what the seling pice they should set to break even monthly-
4-
St they to earna profit equal to 10,000 per month, for how much he should sel the unit
5 What is the fred cost per unit at maximum production
7What is the total variabie cost at maximum production
if they set the selling price for 8ODHS on max production and managed to reduce the total fixed cost by 3 what is the profit increase percentage
2they set Die selling price for SODHS on max production and managed to reduce the total variable cost by 3 wnats the profit increase percentage
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