Problem 10-1

Cox Electric makes electronic components and has estimated the following for a new design of one of its products:

Fixed Cost = $10,000

Material cost per unit = $0.15

Labor cost per unit = $0.10

Revenue per unit = $0.65

Note that fixed cost is incurred regardless of the amount produced. Per unit material and labor costs together make up the variable cost per unit. Assuming Cox Electric sells all that it produces; profit is calculated by subtracting the fixed cost and total variable cost from total revenue.

Click on the datafile logo to reference the data.

(a) Choose the correct influence diagram that illustrates how to calculate profit Profit Profit Total Cost Total Cost Total Total Total per Unit per Unit Fixed Cost Fixed Cost Cost Labor Cost per Unit Cost per Cost per (iv) Profit Profit Total Cost Total Cost Total Total per Unit per Unit Fixed Cost Labor Cost per Unit Fixed Cont Labor Cost per Unit Cost per Cost per -Select your answe