Question
Three production processes - A, B, and C - have the following cost structure: the selling price is 9.92per unit Process Fixed Cost per Year
Three production processes - A, B, and C - have the following cost structure:
the selling price is 9.92per unit
Process | Fixed Cost per Year | Variable Cost per Unit |
A | 116733 | 3.43 |
B | 91416 | 4.20 |
C | 75351 | 5.30 |
1.What is the cost of process A for a volume of 8541units? (round to the nearest cent).
2. What is the cost of process B for a volume of 8541 units?(round to the nearest cent).
3. What is the cost of process C for a volume of 8541 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 43349 if the selling price is 9.92 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 43349if the selling price is 9.92per unit?(Round to the nearest integer).
6. How many units per year must be sold with process C to have annual pre-taxprofits of 43349 if the selling price is 9.92 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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