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 ..........= 6
Number of working days in year ....= 340
Processing time per unit ........= 40 minutes
a. What is the annual capacity with a single 8-hour shift?
b. What is the capacity with two shifts?
c. What is the break-even volume with a single-shift operation?
d. What is the maximum revenue with a single shift?
e. What is the break-even volume with a two-shift operation?