(a) The electronic meters are useful for measuring temperature, pressure, and noise. The costs associated with manufactu

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A The Electronic Meters Are Useful For Measuring Temperature Pressure And Noise The Costs Associated With Manufactu 1 (25.01 KiB) Viewed 36 times

(a) The electronic meters are useful for measuring temperature, pressure, and noise. The costs associated with manufacturing are salary of top management $20,000, cost of hiring office $170,000, cost of land $230,000, cost of raw materials $700, investor capital $190,000, purchasing machine $160,000 and bonus for sales staff $300. If a base unit sells for $2950 and other cost are cost of car for director $30,000, fuel cost $575 and salary of casual labor $500, (a) how many units must be sold each year for breakeven and (b) what will the profit be for sales of 3000 units per year? c) What is the difference between the revenue and variable cost per unit that is necessary to break even at a significantly reduced production level of 2800 units, if fixed costs remain constant? Draw graph showing break-even point [10 Marks]