Question 3: (25 marks) (word count: 200 words)

A- A company is producing a product for selling price of $2000, while incurs the following costs:

Rent: $500, material $500, packaging $200, insurance $2000, Admin salaries $1500, manufacturing electricity $500, newspaper ads $1000, handling $300

Calculate the break-even in units. Show your calculations. (15 marks)

B- Choose a company from your local market and identify the fixed and variable costs as examples from the chosen company. (10 marks)