Problem 1 Process Comparison ABC Technology would like to evaluate three equipment (A, B, and C) to support changes in its Computer Battery production processes. The costs of the equipment for these processes are: Total Fixed Cost Dollars Requirement Per Computer Battery (Variable Cost per Unit) $70 $30 $10 Equipment A Equipment B Equipment C $ 100,000 $200,000 $300,000 a). Solve for the crossover point for equipment A and B and then the crossover point for equipment B and C b). Use a Cost-volume Graph to analyze the results. Answer: Cost-Volume Graph $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 LI 1000 2000 3000 - 4000 5000 Volume b). Result Analysis: Problem 2 Ha Peppas! Pizzeria wants to determine the Break-even point of its new oven by calculating the minimum unit volume, and dollars volume needed. The store first determines that it has fixed costs of $50,000 this period and a variable cost of $4 per pizza. The selling price is $8.00 per pizza. Calculate the break-even point in unit and the break-even point in dollars. Represent the break-even point in a graph and analyze the result. Answer 3: Fixed Cost (F) = Variable Cost per unit (V) = Selling Price (P) = Break-Even Point in Units BE PO = Break-Even Point in Dollars BEPs = Break-Even Graph $350,000 $300,000 Dolla $250,000 $200,000 $150,000 $100,000 $50,000 +000's 0001 ooo'st 20,000 25,000 30,000 35,000 Quantity Result Analysis