Reference no: EM133155230
Three production processes - A, B, and C - have the following cost structure:?
The selling price is 6.86 per unit
|
Process
|
Fixed Cost per Year
|
Variable Cost per Unit
|
|
A
|
129719
|
3.41
|
|
B
|
87982
|
4.90
|
|
C
|
87096
|
4.33
|
1. What is the cost of process A for a volume of 8916 units? (round to the nearest cent).
2. What is the cost of process B for a volume of 8916 units? (round to the nearest cent).
3. What is the cost of process C for a volume of 8916 units? (round to the nearest cent).
4. How many units per year must be sold with process A to have annual pre-tax profits of 47610 if the selling price is 6.86 per unit? (Round to the nearest integer).
5. How many units per year must be sold with process B to have annual pre-tax profits of 47610 if the selling price is 6.86 per unit? (Round to the nearest integer).
6. How many units per year must be sold with process C to have annual pre-tax profits of 47610 if the selling price is 6.86 per unit? (Round to the nearest integer).
7. Considering the pre-tax profits per period, what is the break-even volume for process A? (Round to the nearest integer).
8. Considering the pre-tax profits per period, What is the break-even volume for process B? (Round to the nearest integer).
9. onsidering the pre-tax profits per period, What is the break-even volume for process C? (Round to the nearest integer).