Q1. [15 marks] A company manufactures a product that is used in home appliances. The

factory building is rented for $1800 per month and the material cost is $50 per unit. The

labor cost is $10/hour. An 75% learning curve applies to labor, and it takes 10 hours to

complete the first unit. The company decides to use the time of the 15th unit as a standard

for cost estimation. If the selling price per unit is P = $600 -0.04D, find the following:

a. [5 marks] The value of the variable cost per unit c, (round the final answer for c

to the nearest integer).

b. [5 marks] The optimum number of units, to be produced in a month, to maximize

revenue./nC. [5 marks] The optimum number of units, to be produced in a month, to maximize

profit.