I need a complete and detailed solution and it should be in a word file. Please attach the file, please and thank you Page 1 of 2 383 wordsProblem statementA construction company is planning their projects for the year 2023. The companyis considering the construction of 20 buildings, each is 3,000 m². In 2018, they havebuilt 8 similar buildings but with smaller areas, and the material costs associatedwith those 8 buildings are shown in the following table:Building #12345678Area (m²)1,4301,4751,6551,7901,9612,0152,3752,533Cost ($)350,350358,326385,922399,387419,004427,696456,126461,765909 The materials cost index values are as shown in the following table:YearCost index2017321201833220193482020368202137920223982023406In 2019, the company began constructing larger units (3,000 m² units compared tothose in 2018 as shown in the first table). The labor hours required to complete thefirst 3,000 m² unit was 24,000 hours but the labor hours decreased exponentiallywith time due to the experience gained by workers at a 90% learning slope untilreaching the 15th unit, after which a steady-state was reached. Assume the 2023average labor wage is $20 per hour and the Company's fixed annual cost (overhead)is $2,300,000.(a) What is the breakeven selling price per unit?(b) What is the selling price per unit assuming the company wishes to earn 10%profit on top of the total costs incurred?pa

The break even point is defined as the one where the revenue that the firms generate is equal to the…

A construction company is planning their projects for the year 2023. The company is considering the construction of 20 buildings, each is 3,000 m². In 2018, they have built 8 similar buildings but with smaller areas, and the material costs associated with those 8 buildings are shown in the following table: Building # Area (m²) 1 2 3 4 5 6 7 8 1,430 1,475 1,655 1.790 1,961 2,015 2,375 2,533 Cost (S) 350,350 358,326 385,922 399,387 419,004 427,696 456,126 461,765

A construction company is planning their projects for the year 2023. The company is considering the construction of 20 buildings, each is 3,000 m². In 2018, they have built 8 similar buildings but with smaller areas, and the material costs associated with those 8 buildings are shown in the following table: Building # Area (m²) 1 2 3 4 5 6 7 8 1,430 1,475 1,655 1.790 1,961 2,015 2,375 2,533 Cost (S) 350,350 358,326 385,922 399,387 419,004 427,696 456,126 461,765

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 9SQP

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