QUESTION 1 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 rent a small factory for 2,000dhs per month for production purposes. Utilities will cost 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- 2- Calculate the total Fixed cost 3- Calculate the total variable cost per unite 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 Khaled to earn a profit equal to his current salary, for how much he should sell the unit? 6- What is the fixed cost per unit for maximum production? 7- What is the total variable cost for maximum production? 6- If Khalid set the selling price for 700HS on max production and managed to reduce the total fixed cost by 2% what is the profit increase percentage 9- If Khalid set the selling price for 70DHS on max production and managed to reduce the total variable cost by 2% what is the profit increase percentage
QUESTION 1 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 rent a small factory for 2,000dhs per month for production purposes. Utilities will cost 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- 2- Calculate the total Fixed cost 3- Calculate the total variable cost per unite 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 Khaled to earn a profit equal to his current salary, for how much he should sell the unit? 6- What is the fixed cost per unit for maximum production? 7- What is the total variable cost for maximum production? 6- If Khalid set the selling price for 700HS on max production and managed to reduce the total fixed cost by 2% what is the profit increase percentage 9- If Khalid set the selling price for 70DHS on max production and managed to reduce the total variable cost by 2% what is the profit increase percentage
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter1: Introduction To Managerial Accounting
Section: Chapter Questions
Problem 15E: Ethical Behavior Consider the following scenario between Dave, a printer, and Steve, an assistant in...
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College