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Cost Concepts 01. Khaled has developed a new technology device that is so exciting he is considering quitting his job in order to produce and market it on a large-scale basis. Khaled will ren a small factory for 1,000dhs per month for production purposes. Utilities will cos 500dhs per month. Khaled has already taken an industrial design course at Dubai Men's College to help prepare for this venture. The course cost 800dhs. Khaled will rent production equipment at a monthly cost of 3,000dhs. He estimates the material cost per unit will be 20dhs, and the labor cost will be 12dhs per unit. He will hire workers and spend his time promoting the product. To do this he will quit his job which pays 25,000dhs per month. Advertising and promotion will cost 3,500dhs per month. Required: 1- Complete the chart below by placing an "X" under each heading that helps to identify the cost involved. There can be "X's" placed under more than one heading for a single cost, e.g., a cost might be sunk cost, an overhead cost and a fixed cost; there would be an "X" placed under each of these headings opposite the cost. 2- Calculate the total Fixed cost 3- Calculate the total variable cost per unit 4. If the machine max production capacity is 1000 units per month, what is the selling price he should set to break even monthly? 5 If Whal + Utilities Cost of Industrial Design Course Small factory rent None manufacturing cost Fixed Cost Manufacturing Overhead Cost Opportunity Cost Direct Cost Selling/marketing Cost Sunk Cost Variable Cost Equipment rent Material Cost Labor Cost Advertising Current Salary