Question: $20 Operating and maintenance (O&M) cost per unit Fixed cost $1,650,000 Given that the variable cost per unit (v) includes direct labor cost, the overhead

 $20 Operating and maintenance (O&M) cost per unit Fixed cost $1,650,000

$20 Operating and maintenance (O&M) cost per unit Fixed cost $1,650,000 Given that the variable cost per unit (v) includes direct labor cost, the overhead expenses (which is charged at 200 % of material and purchased parts cost), O& M Cost, and the cost of materials/purchased parts. Given Q as the total number of quantity produced in a year: a) Write the total cost relation for the year. b) Calculate the annual breakeven quantity for this product. c) Determine the total profit and profit per unit if 120% of the annual breakeven quantity are sold d) To reduce the annual breakeven quantity to 25,000 units, what should be the selling price? Problem 2 $20 Operating and maintenance (O&M) cost per unit Fixed cost $1,650,000 Given that the variable cost per unit (v) includes direct labor cost, the overhead expenses (which is charged at 200 % of material and purchased parts cost), O& M Cost, and the cost of materials/purchased parts. Given Q as the total number of quantity produced in a year: a) Write the total cost relation for the year. b) Calculate the annual breakeven quantity for this product. c) Determine the total profit and profit per unit if 120% of the annual breakeven quantity are sold d) To reduce the annual breakeven quantity to 25,000 units, what should be the selling price? Problem 2

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