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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 = 40 minutes a. What is the annual capacity with a single 8-hour shift? b. What is the capacity with two shifts? c. What is the break-even volume with a single-shift operation? Using Equation 2.1 d. What is the maximum revenue with a single shift? e. What is the break-even volume with a two-shift operation?
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