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Zain JO1K Of 175 6:21 E Post Cost Analysis / General Q2: ABC Company has two machines each machine working separately, but they produce the same parts. The variable and fixed costs of those two machines are summarized in the following Table. Machine 1 (M1) cycle time is 1 part/ 2 hours, and Machine 2 (M2) cycle time is 1 part/ 0.6 hour. Cost Fixed Cost Variable Cost (per 10 parts) Number of operators (50/ hour) Part Price The manager wants to invest in new machine (M3), the new machine fixed cost is $1,700, variable cost is $320 / 5 parts, and it need 2 operators, its cycle time is 1 parts / 1 hour. If he decided to buy the new machine, the part price will increase by 25%. Calculate the following for both situations (before buying the new machine and after buying machine 3): 1. Contribution margin per unit? + Reply Zain Jo ... K Of 175 16:21 09 Post Cost Analysis / General is 1 part/ 2 hours, and Machine 2 (M2) cycle time is 1 part/ 0.6 hour. Cost Fixed Cost Variable Cost (per 10 parts) Number of operators (50/ hour) Part Price The manager wants to invest in new machine (M3), the new machine fixed cost is $1,700, variable cost is $320 / 5 parts, and it need 2 operators, its cycle time is 1 parts / 1 hour. If he decided to buy the new machine, the part price will increase by 25%. Calculate the following for both situations (before buying the new machine and after buying machine 3): 1. Contribution margin per unit? 2. Breakeven point unit? 3. How many parts he need to sell in order to get $8,000 operating income? 4. Based on your answer, which option should he choose? + Reply O U Zain JO1K Of 175 6:21 E Post Cost Analysis / General Q2: ABC Company has two machines each machine working separately, but they produce the same parts. The variable and fixed costs of those two machines are summarized in the following Table. Machine 1 (M1) cycle time is 1 part/ 2 hours, and Machine 2 (M2) cycle time is 1 part/ 0.6 hour. Cost Fixed Cost Variable Cost (per 10 parts) Number of operators (50/ hour) Part Price The manager wants to invest in new machine (M3), the new machine fixed cost is $1,700, variable cost is $320 / 5 parts, and it need 2 operators, its cycle time is 1 parts / 1 hour. If he decided to buy the new machine, the part price will increase by 25%. Calculate the following for both situations (before buying the new machine and after buying machine 3): 1. Contribution margin per unit? + Reply Zain Jo ... K Of 175 16:21 09 Post Cost Analysis / General is 1 part/ 2 hours, and Machine 2 (M2) cycle time is 1 part/ 0.6 hour. Cost Fixed Cost Variable Cost (per 10 parts) Number of operators (50/ hour) Part Price The manager wants to invest in new machine (M3), the new machine fixed cost is $1,700, variable cost is $320 / 5 parts, and it need 2 operators, its cycle time is 1 parts / 1 hour. If he decided to buy the new machine, the part price will increase by 25%. Calculate the following for both situations (before buying the new machine and after buying machine 3): 1. Contribution margin per unit? 2. Breakeven point unit? 3. How many parts he need to sell in order to get $8,000 operating income? 4. Based on your answer, which option should he choose? + Reply O U