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1. Use the following cost data for a certain product to answer the questions below: F ixed Cost Selling Price sem Materials and Direct Labor

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1. Use the following cost data for a certain product to answer the questions below: F ixed Cost Selling Price sem Materials and Direct Labor Parts Costin Dollars S27/unit S21/hour hours needed) (2 51.300.0005165 a. If the overhead expenses are charged at 75 % of labor cost, determine the manufacturing cost per unit. answer: b. What is the breakeven volume for this product is? Answer: X= c. What is the profit per unit if 25,000 units are sold? Answer: d. To reduce the breakeven volume to 15,000 units, what should be the selling price per unit? Answer: 2. How long does it take for an investment to double at a 5% nominal annual interest rate if: a. Interest is compounded monthly Answer: n= b. Interest in compounded continuously Answer: n= 3. Given the financial data for three mutually exclusive alternatives in the table below, determine the best alternative using the Uniform annual worth analysis. (MARR is 8%). A B C First cost $25,000 $45,000 $20,000 O&M Cost/year 4,000 10,000 1,900 Benefit year 13.000 18.000 9,000 Salvage value 6,000 3,000 4,600 Life in years Answer: EUAW(A) = EUAW (B= EUAW(C)- Decision: To maximize EUAW, Choose

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