Question: Please show your working and explain the reasoning for your answer. Snacko is in the business of making addictive joule intense snack foods with low

Please show your working and explain the reasoning for your answer.

Please show your working and explain the reasoning for your answer. Snacko

Snacko is in the business of making addictive joule intense snack foods with low nutritional value. Snacko engineers have created three alternative designs for a new machine to mix preservatives, colourants, sodium and artificial cheese flavour with anti-caking compound prior to smearing it on lightly greased corn chips. The costs for the three designs (where a unit is a 10 kg pack of bagged CheeZeeCorn snacks) are: Design Fixed Cost Variable Cost ($/unit) ($/year) A $100,000 20.5 B $350,000 10.5 $600,000 8.0 Management is interested in the production interval of 0 - 150,000 units per year. (a) Determine the production volume over which each design would be chosen, if it is chosen at all. (b) For a production volume of 125,000 units, calculate the average pack cost and the marginal cost. (C) Assuming that a 10 kg pack of bagged CheeZeeCorn snacks sells for $85.00, calculate the breakeven quantity and the contribution margin at the breakeven production volume

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