Reference no: EM132602673

Salleh owns a business selling Kangen water which he sells through individual resellers living around Batu Pahat. A few months ago, he acquired 2 machines to produce Kangen water. Salleh pays RM590 every month as installment payment for these machines. He has 2 workers helping him man the machines, bottling and delivering the bottles to the resellers. The first worker is paid RM790 per month, and the second worker is paid RM800 per month. Salleh pays RM195 for utilities and RM 360 for transportation. He pays a health consultant RM250 each month to verify that the water he bottles and sells meet health regulations standards. The cost of producing each bottle of Kangen water is RM2.95. Salleh pays the resellers RM 1.20 for each bottle sold. The retail price of each Kangen

Water is RM10. Each month, Salleh manages to sell 890 bottles.

a. Calculate the variable cost.

b. Calculate the fixed cost.

c. Calculate Salleh's monthly profit.

d. Calculate the break-even in units.

e. Calculate the price of one bottle if Salleh plans to sell an average of 650 bottles per month to break-even