Question: A process designer has a choice of two methods for making an item. Method J has a fixed cost of RM3000 for tooling and jigs

A process designer has a choice of two methods for making an item. Method J has a fixed cost of RM3000 for tooling and jigs and a variable costs of RM2 per unit. Method K requires a special machine costing RM14 500 and the variable costs are RM5 per unit. Based on the data given, which of the following statements is TRUE? *

total cost for J = 3000 + (2* unit)

total cost for J = 3000 + (2* cost RM)

total cost for K = 14500 + (2* unit)

total cost for J = 14500 + (5* cost RM)

refer to cost-volume analysis given in the previous question, calculate the equalization point, p *

Your answer

refer to cost-volume analysis given in the previous question, if the intended volume is 10000 units, which process is likely to be selected? Give your reasons *

Your answer

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