What is capacity with two shifts

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Reference no: EM1362961

Given the following data for Albert's fabricating production area:

Fixed costs for one shift = $60,000
Unit variable cost = $7
Selling price = $12
Number of machines = 5
Number of working days in year= 340
Processing time per unit = 60 minutes

a. What is the capacity with a single 8-hour shift?
b. What is the capacity with two shifts? The additional fixed cost for a second shift is $40,000.
c. What is the break-even volume with a single-shift operation?
d. What is the maximum revenue with a single shift?
e. What is the break-even volume with a two-shift operation?
f. Draw the break-even chart.

Reference no: EM1362961

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