Question
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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