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There are many ways that mushroom bell anchors maybe manufactured

There are many ways that mushroom/bell anchors maybe manufactured. Albatross Anchor is considering wo new manufacturing processes ( Process A & B ) to reduce costs. From the available information below determine which process has the lowest break even point (this validates the process is more cost effective) and report your analysis and supporting conclusion.

For each process the following fixed costs and variable costs are identified below:

Anchor & Process                                                                                      Process A                                                                        Process B


Sale Price per anchor                                                                              $45                                                                                      $45


Total Fixed costs                                                                                        $650,000                                                                         $950,000


Variable cost per anchor                                                                       $36                                                                                      $29.99

Based on the above info identify:

(a) the total fixed costs per anchor for process A & B

(b) the total number of anchors needed to break even for Process A & B

(c) from your calculations identify whether you would recommend process A & B for adoption (select only one). please make sure to explain how you arrived at your conclusion

Apr 24 2018 View more View Less

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