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Make Breakeven Volume

Annual Fixed Cost $150,000 7,500 Units
Variable Cost / Unit $60
Annual Vol. 12,000
Total Cost 870,000
Buy
Annual Fixed Cost None
Variable Cost / Unit $80
Annual Vol. 12,000
Total Cost 960,000
 As seen in thr problem, each of the variable hare labelled into 7
operations, ranging from 10 , 15, 12 , 20, 14 and 9 Units, as the last
unit is unknown or missing. Comparing to all the operations, we
have concluded that the lowest capacity is 9 units/hour. This shows
that the only process creates a maximum of 9 units per hour. Its a
conclusion that each component int he system would achieve
outputs that is throught he slowest operation (9 Units).