Reference no: EM133921031
Problem
Question I:
Three production processes - A, B, and C - have the following cost structure:
The selling price is 5.33 per unit
|
Process
|
Fixed Cost Per Year
|
Variable Cost Per Unit
|
|
A
|
13,946.82
|
2.25
|
|
B
|
8,767.88
|
4.02
|
|
C
|
7,650.53
|
3.79
|
What is the cost of process A for a volume of 8,938.84 units?
Question II
What is the cost of process B for a volume of 7,311.23 units?
Question III
What is the cost of process C for a volume of 7,826.07 units? Get the instant assignment help.
Question IV
How many units per year must be sold with process A to have annual pre-tax profits of 43,299.33 if the selling price is 7.33 per unit?
Question V
How many units per year must be sold with process B to have annual pre-tax profits of 49,033.50 if the selling price is 9.85 per unit?
Question VI
How many units per year must be sold with process C to have annual pre-tax profits of 49,129.14 if the selling price is 6.93 per unit?
Question VII
Considering the pre-tax profits per period , what is the break-even volume for process A?
Question VIII
Considering the pre-tax profits per period , What is the break-even volume for process B?
Question IX
Considering the pre-tax profits per period , What is the break-even volume for process C?