Question: Question 1.1: Three production processes - A, B, and C - have the following cost structure: the selling price is 5.63 per unit Process Fixed

Question 1.1:

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

the selling price is 5.63 per unit

Process

Fixed Cost

per Year

Variable Cost

per Unit

A

147581

2.24

B

95353

3.12

C

85009

4.82

1. What is the cost of process A for a volume of 8769 units? (round to the nearest cent).

2 . How many units per year must be sold with process A to have annual pre-tax profits of 41671 if the selling price is 5.63 per unit? (Round to the nearest integer)

3. Considering the pre-tax profits per period , what is the break-even volume for process A?

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