BREAK EVEN PROBLEMS 1. Two alternatives are being considered. The following data apply: 10 yrs 10 yrs Alternative A B First cost $49,000 $147,000 Salvage 9,800 25,400 Life Labor 2 operators 1 operator Labor rate $16.00/hr $16.00/hr Production rate 52 parts/hr. 126 parts/hr Machine overhead 25% 25% Labor overhead 55% 55% Selling price $1.45 each $1.45 each a. The BTRR is 25%. Use break even techniques to determine at what volume machine B should be purchased. Construct the cost vs volume curve and show the break even point. b. The BTRR is 40%. Repeat part a. BREAK EVEN PROBLEMS 1. Two alternatives are being considered. The following data apply: 10 yrs 10 yrs Alternative A B First cost $49,000 $147,000 Salvage 9,800 25,400 Life Labor 2 operators 1 operator Labor rate $16.00/hr $16.00/hr Production rate 52 parts/hr. 126 parts/hr Machine overhead 25% 25% Labor overhead 55% 55% Selling price $1.45 each $1.45 each a. The BTRR is 25%. Use break even techniques to determine at what volume machine B should be purchased. Construct the cost vs volume curve and show the break even point. b. The BTRR is 40%. Repeat part a