Question $2$

a$.$ Define product cost and general expenses as applied to engineering economics

$[4]$

b Explain how you would significantly reduce the product cost based on direct production cost

$[4]$

c$.$ A Moringa oleifera processing plant operates at $96\%$ plant attainment with a throughput of $5000k\frac{g}{?}$ day of M$.$ oleifera coagulant. Annual variable production cost of K$2$ million is recorded when the plant is producing at $100\%$ capacity with fixed costs. overhead costs and general expenses totalling $K700,000.$

$1$ Calculate the annual production cost per kilogram at the break$-$even point if a kg of the coagulant is sold at $K\frac{1\mathrm{.}75}{k}g$

$[6]$

$2.$ Briefly explain the importance of brake$-$even analysis to corporate business owners

$[3]$