Question 1 (2 points)

Question 1.1:

Three production processes - A, B, and C - have the following cost structure:

The selling price is 5.33 per unit

Process	Fixed Cost Per Year	Variable Cost Per Unit
A	13,946.82	2.25
B	8,767.88	4.02
C	7,650.53	3.79

What is the cost of process A for a volume of 8,938.84 units? (round to the nearest cent).

Question 1.2

What is the cost of process B for a volume of 7,311.23 units? (round to the nearest cent).

Question 1.3

What is the cost of process C for a volume of 7,826.07 units? (round to the nearest cent).

Question 1.4

How many units per year must be sold with process A to have annual pre-tax profits of 43,299.33 if the selling price is 7.33 per unit? (Round to the nearest integer)

Question 1.5

How many units per year must be sold with process B to have annual pre-tax profits of 49,033.50 if the selling price is 9.85 per unit? (Round to the nearest integer).

Question 1.6

How many units per year must be sold with process C to have annual pre-tax profits of 49,129.14 if the selling price is 6.93 per unit? (Round to the nearest integer).

Question 1.7

Considering the pre-tax profits per period , what is the break-even volume for process A? (Round to the nearest integer).

Question 1.8

Considering the pre-tax profits per period , What is the break-even volume for process B? (Round to the nearest integer).

Question 1.9

Considering the pre-tax profits per period , What is the break-even volume for process C? (Round to the nearest integer).