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Use the accompanying graph to answer the following questions. Assume the company makes 62,000 parts per month of Product A and 11,000 parts per month

Use the accompanying graph to answer the following questions. Assume the company makes 62,000 parts per month of Product A and 11,000 parts per month of Product B. image text in transcribed

a) Which product has the higher variable cost, and what is this value in units of dollars per part?

b) which product has the higher selling price, and what is this value in units of dollars per part?

c) which product has the fastest breakeven time, and what is this value in units of months?

d) at six years, which product makes more profit and what is this value in units pf dollars?

e) if the fixed cost of product B is increased to $1,000,000 and the selling price is increased by $0.75/part, what is the new break even point in units of months?

$6 $5 $4 $3- $2 $1 $0 10 Product A Total Cos Product B Total Cost Product A Revenue Product B Revenue T T T T T 20 30 50 40 Time (t) [months] 60 70 80

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