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For questions 1 0 - 1 2 , refer to the following problem: A manufacturing company is planning to make a newly developed product. Annual

For questions 10-12, refer to the following problem:
A manufacturing company is planning to make a newly developed product. Annual fixed cost for manufacturing of the product is $60,000. The selling price is $10? unit, and the variable cost is $6/unit.
10. To break even; the annual production level for the company needs to be at,
a.10,000 units
b.20,000 units
c.15,000 units
d.6,000 units
11. To make profit of $16,000; the annual production level for the company needs to be at,
a.19,000 units
b.19,500 units
c.20,000 units
d.31,000 units
12. If the company sets annual production at 12,000 units, what must the selling price be to beak even. Assume annual fixed cost is still $60,000 and unit varable cost is $6? unit.
a. $15/unit
b. $10/unit
c. $12/unit
d. $11? unit
For questions 13-16, refer to the following problem:
A company is considering two options for production of a part needed in manufacturing process. Cost information for these two options is as follows:
\table[[ALTERNATIVE,FIXED COST,VARIABLE COST],[Special-Purpose Equipment,$250,000 per year,$10 per unit],[General-Purpose Equipment,$50,000 per year,$20 per unit]]
Using the above information, answer the following questions:
13. What is the break even quantity between the two options?
a.20,000 units per year
b.40,000 units per year
c.25,000 units per year
d.50,000 units per year
What are the total costs under the Specil Pupuse Rqupunent opion for an annual quantily of 50,000 units?
a. $1,000,000
b.,$750.000
c.,$500.000
d. SR50,000
What are the total costs under the Constal Pupow Rumprient pption for an anual quantity of 50,000 mits?
Si00,000
b.,$450,000
c.,$800,000
d.,$1.050,000
For what range of ouput is the spetwi Pupustequpment the low cost option?
a. more thas 40,000 units per year
b. more than 20,000 units per year
c.0-20,000 unis per year
d.0=40,000 unis per year
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