Question
(Please type out all relevant steps with no images, thank you). Three production processes - A, B, and C - have the following cost structure:
(Please type out all relevant steps with no images, thank you).
Three production processes - A, B, and C - have the following cost structure:
the selling price is 9.47per unit
Process | Fixed Cost per Year | Variable Cost per Unit |
A | 101562 | 2.40 |
B | 99055 | 3.09 |
C | 87425 | 4.13 |
1.What is the cost of process A for a volume of 7053units? (round to the nearest cent).
2. What is the cost of process B for a volume of 7053 units?(round to the nearest cent).
3. What is the cost of process C for a volume of 7053 units?(round to the nearest cent)
4. How many units per year must be sold with process A to have annual pre-tax profits of 40621 if the selling price is 9.47 per unit? (Round to the nearest integer)
5. How many units per year must be sold with process B to have annual pre-taxprofits of 40621if the selling price is 9.47per unit?(Round to the nearest integer).
6. How many units per year must be sold with process C to have annual pre-taxprofits of 40621 if the selling price is 9.47 per unit?(Round to the nearest integer).
7. Considering the pre-tax profits per period , what is the break-even volume for process A?(Round to the nearest integer).
8. Considering the pre-tax profits per period , What is the break-even volume for process B?(Round to the nearest integer).
9. Considering the pre-tax profits per period , What is the break-even volume for process C?(Round to the nearest integer).
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