Computing the break-even point

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Reference no: EM1340002

Q1) What is the minimum cost of crashing the following project by 4 days?

Activity Normal Time (days) Crash Time (days) Normal Cost Crash Cost Immediate Predecessor(s)

A 6 5 $ 900 $1,000 ?
B 8 6 300 400 ?
C 4 3 500 600 ?
D 5 3 900 1,200 A, B
E 8 5 1,000 1,600 C

Q2) Air Filter, Inc., sells its products for $6 per unit. It has the following costs:

Rent . . . . . . . . . . . . . . . . . . . . . . . . . $100,000
Factory labor. . . . . . . . . . . . . . . . . . . $1.20 per unit
Executive salaries. . . . . . . . . . . . . . . $89,000
Raw material. . . . . . . . . . . . . . . . . . . $.60 per unit

Separate the expenses between fixed and variable cost per unit. Using this information and the sales price per unit of $6, compute the break-even point.

Reference no: EM1340002

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