ABS engineering decided to build and new factory to produce electrical parts for computer manufacturers. They will rent a small factory for 2,000dhs per month while utities will cost 500 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 5000hs they estimated the material cost per unit will be 20dhs, and the labor cost will be 10dhs per unit. They need to hire a manager and security for with a salary of 30,000 and 5,000dhs per month each. Advertising and promotion will cost cost them 3,500dhs per month Required 1- 2- Calculate the total Fixed cost- 3- Calculate the total vanable cost per unit- 4- If the machine max production capacity is 10000 units per month, what is the selling price they should set to break even monthly?

ABS engineering decided to build and new factory to produce electrical parts for computer manufacturers. They will rent a small factory for 2,000dhs per month while utities will cost 500 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 5000hs they estimated the material cost per unit will be 20dhs, and the labor cost will be 10dhs per unit. They need to hire a manager and security for with a salary of 30,000 and 5,000dhs per month each. Advertising and promotion will cost cost them 3,500dhs per month Required 1- 2- Calculate the total Fixed cost- 3- Calculate the total vanable cost per unit- 4- If the machine max production capacity is 10000 units per month, what is the selling price they should set to break even monthly?

EBK HEALTH ECONOMICS AND POLICY

7th Edition

ISBN:9781337668279

Author:Henderson

Publisher:Henderson

Chapter4: Economic Evaluation In Health Care

Section: Chapter Questions

Problem 7QAP

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