Question: Three production processes - A, B, and C - have the following cost structure: the selling price is 7.11 per unit Process Fixed Cost per
Three production processes - A, B, and C - have the following cost structure:
the selling price is 7.11 per unit
| Process | Fixed Cost per Year | Variable Cost per Unit |
| A | 122769 | 2.74 |
| B | 82660 | 3.01 |
| C | 89122 | 5.30 |
Question 1.5:
How many units per year must be sold with process B to have annual pre-tax profits of 49347 if the selling price is 7.11 per unit? (Round to the nearest integer).
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
