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Question 1.1: Three production processes - A, B, and C - have the following cost structure: the selling price is 5.09per unit Process Fixed Cost

Question 1.1:

Three production processes - A, B, and C - have the following cost structure:

the selling price is 5.09per unit

Process

Fixed Cost

per Year

Variable Cost

per Unit

A

143733

2.06

B

85367

3.78

C

74471

5.12

1.1What is the cost of process A for a volume of 7091units? (round to the nearest cent).

1.2 What is the cost of process B for a volume of 7091 units?

1.3What is the cost of process C for a volume of 7091 units?

1. 4 How many units per year must be sold with process A to have annual pre-tax profits of 45104 if the selling price is 5.09 per unit? (Round to the nearest integer)

1.5How many units per year must be sold with process B to have annual pre-taxprofits of 45104if the selling price is 5.09per unit?(Round to the nearest integer).

1.6How many units per year must be sold with process C to have annual pre-taxprofits of 45104 if the selling price is 5.09 per unit?(Round to the nearest integer).

1.7 Considering the pre-tax profits per period , what is the break-even volume for process A?

1.8 considering the pre-tax profits per period , What is the break-even volume for process B?(

1.9 Considering the pre-tax profits per period , What is the break-even volume for process C?

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