Which chart shows the behaviour of fixed costs per unit? Cost || Cost

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter14: Data Mining
Section14.2: Classification Methods
Problem 11P
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18.
Which chart shows the behaviour of fixed costs per unit?
I
Cost
Cost
=
III
Cost
Activity level
Activity level
IV
Cost
Activity level
Activity level
A
[]Chart I
B
Chart II
C [ ]
Chart III
Chart IV
19. A company manufactures and sells four different products. The following information about the
products is available:
Product
M
N
P
Selling price
$80.00
$50.00
$75.00
$30.00
Variable costs
$51.00
$32.00
$45.00
$18.00
Buy-in cost
$59.00
$41.00
$50.00
$24.50
Labor hours per unit
1.0
1.0
1.0
1.0
In the next period the number of manufacturing labour hours is limited so that not all planned
production can be carried out. However any of the products can be bought-in from an outside
supplier.
Which is the best product to buy-in in order to maximise profit?
A [ ]
Product M
B
]
Product N
C
[]
Product O
D [ ]
Product P
Transcribed Image Text:18. Which chart shows the behaviour of fixed costs per unit? I Cost Cost = III Cost Activity level Activity level IV Cost Activity level Activity level A []Chart I B Chart II C [ ] Chart III Chart IV 19. A company manufactures and sells four different products. The following information about the products is available: Product M N P Selling price $80.00 $50.00 $75.00 $30.00 Variable costs $51.00 $32.00 $45.00 $18.00 Buy-in cost $59.00 $41.00 $50.00 $24.50 Labor hours per unit 1.0 1.0 1.0 1.0 In the next period the number of manufacturing labour hours is limited so that not all planned production can be carried out. However any of the products can be bought-in from an outside supplier. Which is the best product to buy-in in order to maximise profit? A [ ] Product M B ] Product N C [] Product O D [ ] Product P
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