Machine A has a fixed cost of P40,000 per year and a variable cost of P6 per unit. Machine B has an unknown fixed cost but with this process, 250 units can be produced each month at a total variable cost of P2.000. If the total costs of
Machine A has a fixed cost of P40,000 per year and a variable cost of P6 per unit. Machine B has an unknown fixed cost but with this process, 250 units can be produced each month at a total variable cost of P2.000. If the total costs of
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 9E: Gelbart Company manufactures gas grills. Fixed costs amount to 16,335,000 per year. Variable costs...
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Machine A has a fixed cost of P40,000 per year and a variable cost of P6 per unit. Machine B has an unknown fixed cost but with this process, 250 units can be produced each month at a total variable cost of P2.000. If the total costs of the two machines break even at a production rate of 2000 units per year, what is the total fixed cost of Machine B?
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