ABS engineering decided to build and new factory to produce electrical parts for computer manufacturers. They will rent a small factory for 2.000dhsper month while utilities will cost 500dhs per manth. they had to pay 800Dhs for municipality for water and electricity connection fees. On the otherhand 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 willbe 15dhs per unit. They need to hire a manager and security for with a salary of 30.000 and 5000dhs per manth each. Advertising and promotion willcost cost them 3,500dhs per month.Required:2- Calculate the total Foxed cost 45000 What is thve fixed cost per unit at maximum productiont45What is the total variable cost at maximum production 350000f they set the selling price for 8ODHS on max production and managed to reduce the total foxed cost by what is the profit increase percentage0.39%9they set the seling price for 80DHS on max production and managed to reduce the total variable cost by 3 what is the profit increase percentage259%

The question is based on the concept of Cost Accounting. As per the Bartleby guidelines we are…

Answered: ABS engineering decided to build and…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section14.A: Breakeven Analysis

Problem 7P

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