Given the following data for Albert's fabricating production area:
Fixed costs for one shift: $60,000.00
Unit variable cost: $7
Selling price: $12
Number of machines: $6
Number of working days in a year: 340
Processing time per unit: 40 minutes

a) What is the annual capacity with a single eight-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?

Answer rating: 100% (QA)

a Calculation of annual capacity Therefore the annual capacity with a single 8 hour ... View the full answer