Illustrate what is the break-even volume with a single-shift

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Reference no: EM1376012

Q. 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 yr= 340
Processing time per unit = 60 minutes

a. Illustrate what is the capacity with a single 8-hour shift?

b. Illustrate what is the capacity with two shifts? The additional fixed cost for a second shift is $40,000.

c. Illustrate what is the break-even volume with a single-shift operation?

d. Illustrate what is the maximum revenue with a single shift?

e. Illustrate what is the break-even volume with a two-shift operation?

f. Draw the break-even chart.

Reference no: EM1376012

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