making a product for the overseas market. Tech Engineering in TN is making a product The following cost data for the product has be Item Selling price (r) Materials and purchased parts $25/unit Direct labor cost Fixed cost Cost $167 cost Given that the variable cost per unit (v) includes direct labor 2 hrs at $20 per hour cost, the overhead expenses $1,400,000 (which is charged at 80% of rect labor cost), and the cost of materials and purchased parts: a) Write the total cost relation. b) Calculate the breakeven volume for this product. c) Determine the total profit and profit per unit if 30,000 units are sold a) To reduce the breakeven volume to 15,000 units, what should be the selling price? Problem 2 A small company manufactures a certain product Variable costs are $24 per unit and fixed costs are $12,540. The price-quantity demand relationship for this product is P = -0.40Q + 480, where P is the unit sales price of the product and Q is the annual quantity demand. • Total cost = Fixed cost + Variable cost • Revenue – Quantity Demand x Price • Profit = Revenue – Total cost a) Develop the equations for total cost and total revenue. b) Find the breakeven quantity. c) What profit is earned if total revenue is maximized? d) What is the company's maximum possible profit?