Given the following data for Albert's fabricating production area: Fixed costs for one shift = $80,000 Unit

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Given the following data for Albert's fabricating production area:

Fixed costs for one shift = $80,000

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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OM6 operations supply chain management

ISBN: 978-1305664791

6th edition

Authors: David Alan Collier, James R. Evans

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