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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