Question: In a company, the variable cost is $15 per unit, and the fixed cost of one production line is $1,200 per month. A customer orders

In a company, the variable cost is $15 per unit,

In a company, the variable cost is $15 per unit, and the fixed cost of one production line is $1,200 per month. A customer orders 1,200 products at a price of $25 per unit, which are to be delivered in 6 months. Accordingly, the budgeted production volume is 200 units per month. However, only 350 units are produced with one production line at the end of the 2nd month. (a) Calculate the BCWS and BCWP as to the end of the 2nd month. (b) Determine the Schedule Variance, Schedule Variance Percentage, and how long the project is behind the schedule. (c) Suppose the company keeps the production progress unchanged, and all the finished products can be sold out at the end of the 6th month. How much is the marginal profit of the remaining production? (d) In order to speed up the production, the company can start another production line with the same productivity and fixed cost. In this case, how much is the marginal profit of the remaining 850 units? By comparison, judge whether starting another production line is worth or not

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