Create cost-volume graph, Create a Cost-Volume graph that

Create cost-volume graph

Assignment Help Operation Management

Reference no: EM132264793

All analysis and calculations and report must be done in a single (ONE) Excel file.

Put your name at the top of the worksheet.

Make Excel do all of the calculations. . (Instructor must be able to see your cell-reference formulas.)

Include graph interpretation below the graph. Make sure it is clear, complete, and easy to find.

A manager is trying to determine which of three production processes to implement to produce a component for a new product line. Process A would entail a variable cost of $17 per unit and an annual fixed cost of $150,000. Process B would entail a variable cost of $11 per unit and an annual fixed cost of $250,000. Process C would entail a variable cost of $20 per unit and an annual fixed cost of $180,000.

Develop three separate models in your spreadsheet to calculate Total cost for each process. The models must be flexible and able to calculate Total cost for any Quantity produced.

Create a Cost-Volume graph that shows total cost lines for all three options. (Volume should range from 0 to 30,000)

Write an interpretation of your graph.

Reference no: EM132264793

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