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Finding Fixed Costs and Variable Costs

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

Anchor and Process Process A Process B
Sale price per anchor $ 42.00 $ 42.00
Total Fixed cost $ 650,000.00 $950,000.00
Variable cost per anchor $ 36.00 $ 29.99

Based on the information in the table above complete the table below:

Anchor and Process Process A Process B
(a) Fixed costs per anchor
(b) The total number of anchors to attain
break even point for Process A and Process B

(c) Based on your calculations which Process (A or B) that you would recommend for adoption (you can select only one). Please make sure to explain how you arrived at your conclusion.

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This solution helps with questions regarding fixed costs and valuable costs.

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ANSWER
process A process B
selling price per anchor 42 42
less:Variable cost per anchor 36 29.99
contribution per anchor 6 12.01
total number of anchors to break even=total ...

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