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How to calculate the annual Profit based on the following Weekly production with the following unit costs OUTPUT VC FC SP Product A 100,000 .75

How to calculate the annual Profit based on the following Weekly production with the following unit costs

OUTPUT VC FC SP

Product A 100,000 .75 .24 2.00

Product B 50,000 .30 .17 1.00

Prodcuct C 125000 1.10 .25 1.70

Sales Volume is equal to production volume and a 3 week allowance for holidays with no production

The rates of absorption of fixed costs based on Current levels of output with similar cost structure .

i wish to MANUFACTURE product D

To Market product D Costs required 250,000

machine for product A will need to be modified - cost 80,000

additional annual Fixed costs also of 45000

VC of Prodcut D .60 CENTS PER UNIT

Demand survey suggests the following for Product D

sp 1.70 weekly demand 55000

sp 1.40 weekly demand 80000

sp 1.15 weekly demand 120,000

to producer product D

REDUCTION OF PRODUCT A BY 25 % PA

OR

REDUCTION OF PRODUCT C BY 28% PA

THIS IS TO FACILITATE MACHINE TIME FOR PRODUCT D

Product D must cover any loss of profit casused by reduction in volume

require the contributions that the various alternative sales levels of atomisers might make

In relation to this question Above ..

When there is a reduction in production in either "A" OR "C" .... does the Fixed Costs remain the same ... eventhough there is a reduction ... eg Prodcuct a has A FC per unit of .24 ... this equates to a FC OF 24,000 PER WEEK.... IF Product A is reduced by 25% to facilitate time for Product D's introduction... does the fc of 24,000 remain or reduced the same % as the VC ...for production of product A ... i ask as i understand that FC always remain no matter what production takes place .. egproduction managers salary is still the same no matter how many units are produced ... just need clarification ?

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