1. An electronics manufacturer is considering two methods for producing a circuit board. The board can be hand-wired at an estimated cost of $9.80 per unit and an annual fixed equipment cost of $10,000.A printed equivalent can be produced using equipment costing $180,000 with a service life of 8 years and salvage value of $12,000. It is estimated that the labor cost will be $3.20per unit and that the processing equipment will cost $4,000 per year to maintain. If the interest rate is 8%, how many circuit boards must be produced each year for the two methods to break even?

2. The fixed operating cost of a machine center (capital recovery, interest, maintenance, space charges, supervision, insurance, and taxes) is F dollars per year. The variable cost of operating the center (power, supplies, and other items, but excluding direct labor) is V dollars per hour of operation. If N is the number of hours the center is operated per year, TC the annual total cost of operating the center, the hourly cost of operating the center, t the time in hours to process 1 unit of product, and M the center cost of processing 1 unit, write expressions for (a) TC, (b) , and (c) M

3. Chemco operates two plants, A and B, which produce the same product. The capacity of plant A is 60,000 gallons while that of B is 80,000 gallons. The annual fixed cost of plant A is $2,600,000 per year and the variable cost is $32 per gallon. The corresponding values for plant B are $2,800,000 and $39 per gallon. At present, plants A and B are being operated at 35% and 40% of capacity, respectively. a. What would be the total cost of production of plants A and B? b. What are the total cost and the average unit cost of the total output of both plants? c. What would be the total cost to the company and cost per gallon if all production were transferred to plant A? d. What would be the total cost to the company and cost per gallon if all production were transferred to plant B?

4. A certain processing center has the capacity to assemble 650,000 units per year. At present, it is operating at 65% of capacity.The annual income is $416,000.Annual fixed cost is $192,000 and the variable cost is $0.38 per unit assembled. a. What is the annual profit or loss attributable to the center? b. At what volume of output does the center break even? c. What will be the profit or loss at 70%, 80%, and 90% of capacity on the basis of constant income per unit and constant variable cost per unit?