Calculate the commercial cost and price

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The company produces one type of product. Its production volumes per year are 24 thousand. pcs. The production department employs four workers, who are paid 6 euros for each product produced. Each worker produces 6 thousand. pcs. products per year. The annual salary of the administration staff consists of 15,000 Eur. The raw materials required for the production of one product cost 5 Eur., And additional materials for one product - 1 Eur. The company uses machines in the production process, which cost 8,000 Eur and will be used for 5 years, and other equipment, which cost 900 Eur and will be used for 5 years. The company pays EUR 2,000 per year for the maintenance and management of the premises. Communication and other services cost the company 1700 Eur per year. The company plans to receive 30 percent. profit for each unit of product sold. Depreciation of fixed assets is calculated using the straight-line method.

Question 1: Calculate the commercial cost, price (excluding VAT) and gross profit of one product.

Reference no: EM132560898

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