ABS engineering decided to build and new factory to produce electrical parts for computer manufacturers. They will rent a small factory for 2.000dh per month while utilities will cost 500dhs per month they had to pay 8000hs 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 15dhe per unit. They need to hire a manager and security for with a salary of 30,000 and 5,000ths per month each Advertising and promotion will cost cost them 3.500dhe per month Required 1- 2- Calculate the total Fixed cost 45800 3- Calculate the total variable cost per unit 35 4- If the machine max production capacity is 10000 units per month, what is the selling price they should set to break even monthly 30.50 5- If they to earn a profit equal to 10.000 per month, for how much he should sell the unit? 40.58 6- What is the fixed cost per unit at maximum production? 7. What is the total variable cost at maximum production? 8-If they set the selling price for 800HS on max production and managed to reduce the total fixed cost by 3% what is the profit increase percentage 9- If they set the selling price for 800HS on max production and managed to reduce the total variable cost by 3% what is the procese percentage
