THINKING LIKE AN ENGINEER W/ACCESS
THINKING LIKE AN ENGINEER W/ACCESS
17th Edition
ISBN: 9781323522127
Author: STEPHAN
Publisher: PEARSON C
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Chapter 11, Problem 20ICA

Use the accompanying graph to answer the following questions. Assume the company makes 30,000 parts per month of Product A and 17,500 parts per month of Product B.

Chapter 11, Problem 20ICA, Use the accompanying graph to answer the following questions. Assume the company makes 30,000 parts

  1. a. Which product has the higher variable cost, and what is this value in units of dollars per part?
  2. b. Which product has the higher selling price, and what is this value in units of dollars per part?
  3. c. Which product has the faster breakeven time, and what is this value in units of months?
  4. d. At six years, which product makes more profit, and what is this value in units of dollars?
  5. e. If the fixed cost of product B is increased to $1,000,000 and the selling price is increased by $0.75 per part, what is the new breakeven point in units of months?
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Chapter 11 Solutions

THINKING LIKE AN ENGINEER W/ACCESS

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