Question: Data for the next 3 questions: Sandra has developed a new product that she has decided to produce and market. Sandra has found a small

 Data for the next 3 questions: Sandra has developed a new

Data for the next 3 questions: Sandra has developed a new product that she has decided to produce and market. Sandra has found a small building to rent for $1500 a month that will house the production facilities. One major piece of equipment that will be used to manufacture the product will be rented for $300 a month. Sandra purchased all of the other needed tools for $3,000 which will last for two years (will depreciated $1500 per month). Material costs to make the product are estimated at $3 per unit. Sandra is expecting to spend about 0.25 hour for production of each unit and she is planning a pay rate of $32 per hour for herself. Monthly advertising costs for the product are estimated at $800. Sandra is planning to pay $2 commission for sale of cach unit. She is expecting to sell 1000 units cach month at a price of $18 each. Q15. Compute total fixed costs per month Example of answer: 4500 Question 16 (5 points) Q16. Compute variable cost per unit. Example of answer: 2.10 Question 17 (5 points) Q17. Compute the amount of profit that Sandra will be making per unit Example of answer: 2.10

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