Can someone solve just part E? 1. [4 points]. Your startup-company launched its

Question

Can someone solve just part E?

1. [4 points]. Your startup-company launched its first product for sale two years ago. You produced 10,000 units in year 1 and 20,000 in year 2, with the costs as shown in the table below Year 1 $30,000 20,000 Year 2 $105,000 70,000 Direct Labor Direct Materials Overhead Variable Fixed 12,000 36,000 42,000 36,000 Selling and Administrative Costs Variable Fixed 5,000 22,000 17,500 22,000 For each year, determine the following: a. [1 points] Total manufacturing costs b. [0.5 points] Manufacturing costs per unit c. [1 points] Total variable costs d. [0.5 points] Total variable costs per unit e. [1 points] Total costs that have to be recovered if the firm is to make a profit

Explanation / Answer

(e) Total costs that have to be recovered if the firm is to make a profit is total variable cost+total fixed cost. That means when Total revenue minus total cost is equal to zero.

In year 1 it is (30,000 + 20,000 + 12,000 + 36,000 + 5,000 + 22,000) = 125,000

In year 2 it is (105,000 + 70,000 + 42,000 + 36,000 + 17,500 + 22,000) = 292,500

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