Question: Question 3: (25 marks) (word count: 300 words) a) A company is producing a product for selling price of $5000, while incurs the following costs:

Question 3:

(25 marks) (word count: 300 words)

a) A company is producing a product for selling price of $5000, while incurs the following costs: Rent: $1500, shipping $1000, raw material $2200, packaging $300, insurance $2000, fixed salaries $1500, manufacturing electricity $1000, advertising 3000 Calculate the break-even in unites. 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)

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