The fixed cost to restart production is $104,400 per model. Once production starts the variable cost...

The fixed cost to restart production is $104,400 per model. Once production starts the variable cost to make each vehicle is $272.50 per vehicle. The firm’s management is trying to decide if the firm should only concentrate on the domestic (Canadian) market (Estimated 745 of vehicles) or pursue export opportunities (Estimated combined 11710 of vehicles) Calculate the total cost per vehicle for the two (2) options. Which of the two (2) options do you recommend? Why?

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A product sells for $5 per unit. The variable cost of production is $3 per unit. Total fixed...

A product sells for $5 per unit. The variable cost of production is $3 per unit. Total fixed costs per year are $1000, including depreciation expense of $200. What is the cash flow breakeven point in units and in dollars? A. 400 units and $2000. B. 267 units and $1333. C. 500 units and $2500. D. 333 units and $1665.

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show the fixed cost are fixed in total but is variable on a per unit basis...

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