CH07suphw - SP10 BUS3-140 S7.1 Utilization = actual output...

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SP10 BUS3-140 actual output 6,000 Utilization = = = 0.857 85.7% design capacity 7,000 S7.1 S7.2 ` Actual Output 4,500 Efficiency = -------------------------- = ------------------- = 0.692 = 69.2% Effective Capacity 6.500 S7.12 (a) Proposal A breakeven in units is: Fixed cost $50,000 $50,000 6,250 units 20 12 8 SP VC === −− (b) Proposal B breakeven in units is: Fixed cost $70,000 $70,000 7,000 units 20 10 10 SP VC S7.13 (a) Proposal A breakeven in dollars is: + == = 12 20 Fixed cost $50,000 $10,000 $60,000 $150,000 0.40 1 1 VC SP (b) Proposal B breakeven in dollars is: + $ 10 20 Fixed cost
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This note was uploaded on 09/08/2010 for the course BUS 140 at San Jose State University .

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