What is the annual profit or loss attributable to the center

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Reference no: EM13212645

A certain processing center has the capacity to assemble 650,000 units per year. At present, it is operating at 65% of capacity. The annual income is $416,000. Annual fixed cost is $192,000 and the variable cost is $0.38 per unit assembled.

a) What is the annual profit or loss attributable to the center?

b) At what volume of output does the center break even?

c) What will be the profit or loss at 70%, 80% and 90% of capacity on the basis of constant income per unit and constant variable cost per unit?

Reference no: EM13212645

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