Question: Question 1 ( 9 parts ) Three production processes - A , B , and C - have the following cost structure: the selling price

Question 1(9 parts)
Three production processes - A, B, and C - have the following cost structure:
the selling price is 5.26 per unit. Refer to this table below:
Process, Fixed Cost per Year, Variable Cost per Unit
A,119164,2.54
B,80631,4.52
C,70617,5.27
1.1 What is the cost of process A for a volume of 7104 units? (round to the nearest cent).
Question 1.2:
What is the cost of process B for a volume of 7104 units? (round to the nearest cent).
Question 1.3:
What is the cost of process C for a volume of 7104 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 43605 if the selling price is 5.26 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 43605 if the selling price is 5.26 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 43605 if the selling price is 5.26 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).
1.9:
Considering the pre-tax profits per period , What is the break-even volume for process C?(Round to the nearest integer).

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!