Question
Question 1.1: Three production processes - A, B, and C - have the following cost structure: the selling price is 6.90 per unit Process Fixed
Question 1.1:
Three production processes - A, B, and C - have the following cost structure:
the selling price is 6.90 per unit
Process | Fixed Cost per Year | Variable Cost per Unit |
A | 141262 | 3.59 |
B | 90393 | 3.68 |
C | 82595 | 5.47
|
Question 1.3:
What is the cost of process C for a volume of 8900 units? (round to the nearest cent).
Question 1.4:
How many units per year must be sold with process A to have annual pre-tax profits of 44123 if the selling price is 6.90 per unit? (Round to the nearest integer)
Question 1.5:
How many units per year must be sold with process B to have annual pre-tax profits of 44123 if the selling price is 6.90 per unit? (Round to the nearest integer).
Question 1.6:
How many units per year must be sold with process C to have annual pre-tax profits of 44123 if the selling price is 6.90 per unit? (Round to the nearest integer).
Question 1.7:
Considering the pre-tax profits per period , what is the break-even volume for process A? (Round to the nearest integer).
Question 1.8:
Considering the pre-tax profits per period , What is the break-even volume for process B? (Round to the nearest integer).
Question 1.9:
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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