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12. Sultanate Heavy Equipments Company LLC., has a 1 year contract for the production of 400,000 Heavy Equipments for an another company. The Sultanate Heavy
12. Sultanate Heavy Equipments Company LLC., has a 1 year contract for the production of 400,000 Heavy Equipments for an another company. The Sultanate Heavy Equipments CEO- Mr. Ahmed, hopes the contract will be extended and the volume increased next year. Mr.Ahmed has developed costs for three alternatives and the alternatives are Process A1, Process B1 and Process C1. The details of the cost are as follows:
Process A1
Process B1
Process C1
Annual Fixed Cost
800000 (OMR)
700000 (OMR)
600000 (OMR)
Variable Cost
15 (OMR)
13 (OMR)
12 (OMR)
12. Sultanate Heavy Equipments Company LLC., has a 1 year contract for the production of 400,000 Heavy Equipments for an another company. The Sultanate Heavy Equipments CEO- Mr. Ahmed, hopes the contract will be extended and the volume increased next year. Mr.Ahmed has developed costs for three alternatives and the alternatives are Process A1, Process B1 and Process C1. The details of the cost are as follows:
| Process A1 | Process B1 | Process C1 |
Annual Fixed Cost | 800000 (OMR) | 700000 (OMR) | 600000 (OMR)
|
Variable Cost | 15 (OMR) | 13 (OMR) | 12 (OMR) |
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