Question: Three production processes - A, B, and C - have the following cost structure: the selling price is 9.92per unit Process Fixed Cost per Year

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

the selling price is 9.92per unit

Process

Fixed Cost

per Year

Variable Cost

per Unit

A

116733

3.43

B

91416

4.20

C

75351

5.30

1.What is the cost of process A for a volume of 8541units? (round to the nearest cent).

2. What is the cost of process B for a volume of 8541 units?(round to the nearest cent).

3. What is the cost of process C for a volume of 8541 units?(round to the nearest cent).

4. How many units per year must be sold with process A to have annual pre-tax profits of 43349 if the selling price is 9.92 per unit? (Round to the nearest integer)

5. How many units per year must be sold with process B to have annual pre-taxprofits of 43349if the selling price is 9.92per unit?(Round to the nearest integer).

6. How many units per year must be sold with process C to have annual pre-taxprofits of 43349 if the selling price is 9.92 per unit?(Round to the nearest integer).

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

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

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

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