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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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