Question: 8. ASB wants to increase capacity by adding a new machine. The fixed costs for the machine are $50,000, and labour cost is $2.5 per

8. ASB wants to increase capacity by adding a new

8. ASB wants to increase capacity by adding a new machine. The fixed costs for the machine are $50,000, and labour cost is $2.5 per unit, and material cost is $3.5 per unit. The selling price is $20 per unit. What is the break-even point if they decide to install the machine? 9. Consider the following product structure. Sixty units of Product A are needed. How many units of C&D are needed? A . B(2) C(3) D D E(2) 10. Your company has compiled the following data on the small set of products that comprise the specialty repair parts division. Perform ABC analysis on the data. Which products do you suggest the firm keep the tightest control over? Explain. SKU Annual Demand Unit Cost R 500 $2,500 S 400 $90 T 600 $60 U 600 $1,000 V 1000 $50

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