Given the following data for Albert s fabricating production area Fixed costs
Given the following data for Albert’s fabricating production area:
Fixed costs for one shift ....... = $60,000
Unit variable cost ............ = $7
Selling price .................... = $12
Number of machines .......... = 6
Number of working days in year .... = 340
Processing time per unit ........ = 40 minutes
a. What is the annual capacity with a single 8-hour shift?
b. What is the capacity with two shifts?
c. What is the break-even volume with a single-shift operation?
d. What is the maximum revenue with a single shift?
e. What is the break-even volume with a two-shift operation?
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