processing system empioyed oy a irm at a particuiar ocation. L naracterze the nature of the intersection between the type of shop (column) and process dimension (row) in the following table. 7. For each of the following variables, explain the differences (in general) as one moves from a workcenter to an assembly line environment. a. Throughput time (time to convert raw material into product) b. Capital/labor intensity c. Bottlenecks 8. A book publisher has fixed costs of $300,000 and variable costs per book of $8.00. The book sells for $23.00 per copy. a. How many books must be sold to break even? b. If the fixed cost increased, would the new break-even point be higher or lower? c. If the variable cost per unit decreased, would the new break-even point be higher or lower? 9. A manufacturing process has a fixed cost of $150,000 per month. Each unit of product being produced contains $25 worth of material and takes $45 of labor. How many units are needed to break even if each completed unit has a value of $90 ? (Answer in Appendix E) 10. Assume a fixed cost of $900, a variable cost of $4.50, and a selling price of $5.50. a. What is the break-even point? b. How many units must be sold to make a profit of $500.00 ? c. How many units must be sold to average $0.25 profit per unit? $0.50 profit per unit? $1.50 profit per unit? 11. Aldo Redondo drives his own car on company business. His employer reimburses him for such travel at the rate of 36 cents per mile. Aldo estimates that his fixed costs per year-such as taxes, insurance, and depreciation - are $2,052. The direct or variable costs - such as gas, oil, and maintenance-average about 14.4 cents per mile. How many miles must he drive to break even? 12. A firm is selling two products - chairs and bar stools-each at $50 per unit. Chairs have a variable cost of $25, and bar stools $20. The fixed cost for the firm is $20,000. a. If the sales mix is 1:1 (one chair sold for every bar stool sold), what is the break-even point in dollars of sales? In units of chairs and bar stools? processing system empioyed oy a irm at a particuiar ocation. L naracterze the nature of the intersection between the type of shop (column) and process dimension (row) in the following table. 7. For each of the following variables, explain the differences (in general) as one moves from a workcenter to an assembly line environment. a. Throughput time (time to convert raw material into product) b. Capital/labor intensity c. Bottlenecks 8. A book publisher has fixed costs of $300,000 and variable costs per book of $8.00. The book sells for $23.00 per copy. a. How many books must be sold to break even? b. If the fixed cost increased, would the new break-even point be higher or lower? c. If the variable cost per unit decreased, would the new break-even point be higher or lower? 9. A manufacturing process has a fixed cost of $150,000 per month. Each unit of product being produced contains $25 worth of material and takes $45 of labor. How many units are needed to break even if each completed unit has a value of $90 ? (Answer in Appendix E) 10. Assume a fixed cost of $900, a variable cost of $4.50, and a selling price of $5.50. a. What is the break-even point? b. How many units must be sold to make a profit of $500.00 ? c. How many units must be sold to average $0.25 profit per unit? $0.50 profit per unit? $1.50 profit per unit? 11. Aldo Redondo drives his own car on company business. His employer reimburses him for such travel at the rate of 36 cents per mile. Aldo estimates that his fixed costs per year-such as taxes, insurance, and depreciation - are $2,052. The direct or variable costs - such as gas, oil, and maintenance-average about 14.4 cents per mile. How many miles must he drive to break even? 12. A firm is selling two products - chairs and bar stools-each at $50 per unit. Chairs have a variable cost of $25, and bar stools $20. The fixed cost for the firm is $20,000. a. If the sales mix is 1:1 (one chair sold for every bar stool sold), what is the break-even point in dollars of sales? In units of chairs and bar stools