Question 3 i

Question 3 i. Smile Bag Bhd is a company manufacture exclusive handbags made with fine leather. The manufacturing cost per unit of producing 2,000 units of bags are: Direct material RM 6.00 per unit Direct labour RM 12.00 per unit Variable production overhead RM 4.10 per unit Fixed production overhead RM 8.50 per unit Production cost per unit RM 30.60 per unit Required: If 3,000 units were to be produced: a) Determine the total variable cost and variable cost per unit. b) Determine the total fixed cost and fixed cost per unit. c) Determine the production cost per unit. d) Determine the total production costs.

what is present value ? Describe annuity concept ?