1. a. Assume that your employer is a manufacturing firm that produces several different electronic consumer products. What are four nonmonetary factors (attributes that may be important when a significant change is considered in the design of the current best selling product? [2] b. Classify each of the following cost items as mostly fixed or variable. Give appropriate reason as well. [2] Raw materials Direct labor Depreciation Property taxes c. A plant operation has fixed cost of $2,000,000 per year, and its output capacity is 100,000 electrical appliances per year. The variable cost is $40 per unit, and the product sells for $90 per unit. i. Construct the economic breakeven chart and determine the breakeven quantity and dollar breakeven point. ii. Compare annual profit when the plant is operating at 100% capacity. Assume that the first 90% of capacity output is sold at $90 per unit and that the remaining 10% of production is sold at $70 per unit [3] d. You are planning to build a new home with approximately 2,000-2,500 gross square feet of living space on one floor. In addition, you are planning an attached two-car garage (with storage space) of approximately 450 gross square feet. Develop a cost and revenue structure for designing and constructing, operating (occupying) for 10 years, and then selling the home at the end of the 10th year. [3]
