Assignment 17.4
Total cost = Fixed cost + (Variable cost X Quantity)

TC = FC + VC (Q)
Identify the cost whether it is fixed cost or variable cost
Fixed cost
Variable cost
Plant manager and stuff $180,000
Raw material and components costs$2,150,000
Faxes and insurance $50,000
Director labor $950,000
Plant and equipment depreciation $120,000
Direct expenses $60,000
Warehouse expenses $60,000
Utilities for plant $70,000
Engineering salaries (plant) $90,000
Office utilities $10,000
Engineering expenses (plant) $30,000
Administrative staff salaries $120,000
Sales staff, salaries and commissions$100,000
Total Fixed cost $750,000
Total Variable cost $3,240,000

Quantity=60 units
Profit margin=15%
Manufacturing cost:
TC = FC + VC (Q)
= $750,000 + $3,240,000 (60)
= $195,150,000
Selling price:
15 X $195,150,000 = $29,272,500
100
$195,150,000 + $29,272,500 = $224,422,500