The firm knows it will produce between 0 and 60,000 Sport C150s at the new plant each year, but, thus far, that is the extent of its knowledge about production plans. a) The value of volume, V, of production above which site C is recommended = 9678 Sport C150s (round your response up to the next whole number). Sport C150s (round your response up to the next b) The value of volume, V, of production below which site A is recommended whole number).

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter17: Activity Resource Usage Model And Tactical Decision Making
Section: Chapter Questions
Problem 22E: Thaler Company bought 26,000 of raw materials a year ago in anticipation of producing 5,000 units of...
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Subject: accounting 

 

Site
ABC
А
Annualized Fixed Cost
$10,000,000
$20,000,000
$25,000,000
Variable Cost per Auto
Produced
a) The value of volume, V, of production above which site C is recommended
whole number).
$2,600
$2,000
$1,050
The firm knows it will produce between 0 and 60,000 Sport C150s at the new plant each year, but, thus far, that is the extent of its knowledge
about production plans.
9678 Sport C150s (round your response up to the next
b) The value of volume, V, of production below which site A is recommended Sport C150s (round your response up to the next
whole number)
Transcribed Image Text:Site ABC А Annualized Fixed Cost $10,000,000 $20,000,000 $25,000,000 Variable Cost per Auto Produced a) The value of volume, V, of production above which site C is recommended whole number). $2,600 $2,000 $1,050 The firm knows it will produce between 0 and 60,000 Sport C150s at the new plant each year, but, thus far, that is the extent of its knowledge about production plans. 9678 Sport C150s (round your response up to the next b) The value of volume, V, of production below which site A is recommended Sport C150s (round your response up to the next whole number)
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