Break-Even Analysis. You are in the process of understanding a product's cost composition. You notice that there are five major components: direct materials, direct labor, maintenance, equipment rental and factory security. These costs may or may not change with the production level. A visualization shows you the (unit) costs for these items when the production level is up to 10,000 units, 10,001 to 20,000 units, 20,001 to 30,000 units and 30,001 to 40,000 units. Given that 40,000 units is the largest possible capacity, the company is not able to go beyond 40,000 units. Based on this visualization, please answer the following questions. Click here to access a Tableau file, and here to access a Power BI file. (The Tableau and Power BI files contain the same data: you can use either to answer the questions in this assignment. Your instructor may specify which program they prefer you to use!) How to Access Tableau: You can open the Tableau file in this problem statement with Tableau Desktop software. If you don't have Tableau Desktop, you can download the most recent version of Tableau Reader, a free program that allows you to open Tableau visualizations. To get the most recent version, search for "Tableau Reader" in your internet browser, or click here. How to Access Power BI: You can open the Power BI file in this problem statement with Power BI Desktop. If you don't have it already, search for "Power BI download" in your internet browser, or click here for a free download. Value 10 15 20 25 30 35 40 45 5 50 variable Direct labor (per unit) --> Direct materials (per unit) 10000 Maintenance (per unit) Direct labor (per unit) 10 Direct materials (per unit) 20000 Maintenance (per unit) Level in Units Direct labor (per unit) Direct materials (per unit) 30000 Tableau Reader - Weygandt_MA8e_DA_Ch05 CVP_Tableau Entire View - Maintenance (per unit) Direct labor (per unit) . Direct materials (per unit) 40000 Maintenance (per unit) TE ZOU AV Value 4K 10K 16K 18! Fixe 20 ct materials (per unit) 0 Maintenance (per unit) Value Fixed Equipment rental 10000 Factory security Equipment rental Factory security Equipment rental 20000 Level in Units 30000 Factory security Equipment rental Factory security 40000 Which of the following statement best describes the pattern of per unit direct material cost given different production levels? It increases with production levels. It decreases before 20,000 units but stays the same when it is more than 20,001 units. It stays the same regardless of the production level. It decreases with production levels. For factory security, how does the total cost change with production levels? It stays the same regardless of the production level. It increases with production levels. It decreases with production levels. It decreases then increases after 20,000 units. What is the total variable cost when the production level is 40,000 unit? $3,000,000 $2,000,000 $4,000,000 $1,000,000
