Question: nothing is missing 1. Two alternatives are being considered. The following data apply: Alternative A B First cost $49,000 $147,000 Salvage 9,800 25,400 Life 10
1. Two alternatives are being considered. The following data apply: Alternative A B First cost $49,000 $147,000 Salvage 9,800 25,400 Life 10 yrs 10 yrs Labor 2 operators I 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 cach $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. 1. Two alternatives are being considered. The following data apply: Alternative A B First cost $49,000 $147,000 Salvage 9,800 25,400 Life 10 yrs 10 yrs Labor 2 operators I 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 cach $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
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