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A company manufactures a product that is used in home appliances. The factory building is rented for $100*X per month and the material cost is $75 per unit. The labor

cost is$9.5/hour. An 80% learning curve applies to labor and it takes 10 hours to complete the first unit. The company decides to use the time of the Xh unit as a standard for cost estimation. If the selling price per unit is P= $500 – 0.04D, find the following: a. [10 marks] The value of the variable cost per unit cv (round the final answer for cv to the nearest integer). b. [5 marks] The optimum number of units, to be produced in a month, to maximize revenue. c. [5 marks] The optimum number of units, to be produced in a month, to maximize profit. d. [5 marks] The profit that occurs at the number of units found in Part (c).

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