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Given the following data for Albert s fabricating production area Fixed costs

Given the following data for Albertâ€™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?

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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