3. International Machine Manufacturing Company is preparing to build a new plant by considering three potential processes for it. International Machine Manufacturing Company has identified three process alternatives and developed costs as well The fixed and variable costs for the three alternative processes are presented below. Process A, B and C are the name of three process altematives. The cost data are as follows. Process A Process B Process C 60000 60000 Annual Contracted Units Annual fixed cost 60000 OMR 785.000 OMR 525 000 OMR 19 OMR 400,000 Variable cost (Per Unit) OMR 22 OMR 17 Calculate the following by usng the data given a Identify the best process to be followed by the International Machine Manufacturing Company b. Determine the Economical Volume for each process. c. Determine the best process for each of the following volumes: (1) 30,000 (1) 110,000 (ini) 200,000 4. The following data gives the number of battery sales by one of the leading automobile

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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3. International Machine Manufacturing Company is preparing to build a new plant by
considering three potential processes for it. International Machine Manufacturing Company
has identified three process alternatives and developed costs as well The fixed and variable
costs for the three alternative processes are presented below. Process A, B and C are the
name of three process altematives. The cost data are as follows.
Process A
Process B
Process C
60000
60000
Annual Contracted Units
Annual fixed cost
60000
OMR 785.000
OMR 525 000
OMR 19
OMR 400,000
Variable cost (Per Unit)
OMR 22
OMR 17
Calculate the following by usng the data given
a Identify the best process to be followed by the International Machine Manufacturing
Company
b. Determine the Economical Volume for each process.
c. Determine the best process for each of the following volumes: (1) 30,000 (1) 110,000
(ini) 200,000
4. The following data gives the number of battery sales by one of the leading automobile
Transcribed Image Text:3. International Machine Manufacturing Company is preparing to build a new plant by considering three potential processes for it. International Machine Manufacturing Company has identified three process alternatives and developed costs as well The fixed and variable costs for the three alternative processes are presented below. Process A, B and C are the name of three process altematives. The cost data are as follows. Process A Process B Process C 60000 60000 Annual Contracted Units Annual fixed cost 60000 OMR 785.000 OMR 525 000 OMR 19 OMR 400,000 Variable cost (Per Unit) OMR 22 OMR 17 Calculate the following by usng the data given a Identify the best process to be followed by the International Machine Manufacturing Company b. Determine the Economical Volume for each process. c. Determine the best process for each of the following volumes: (1) 30,000 (1) 110,000 (ini) 200,000 4. The following data gives the number of battery sales by one of the leading automobile
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