Problem regarding the total costs of producing

Reference no: EM13988307

Assume you have developed and tested a prototype electronic product and are about to start your new business. You purchase preprogrammed computer chips at $70 per unit. Other component costs include plastic casings at $15 per unit and assembly hardware at $5 perunit. Direct labor costs are $15 per hour and three units can be produced per hour. You intend to selleach unit at a 50 percent markup over the total costs of producing each unit. The plan is to produce 500 product units per month in January, February, and March. Sales are expected to be 200 units

Reference no: EM13988307

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