A plant producing hydrogen has a fixed overhead of per year and incurs a variable cost of per ton. The average selling price is per ton.
(A) What is the breakeven volume for this plant?
(B) What is the total sales revenue that will produce a net contribution of ?
(C) What is the number of units produced by the plant in 2004, if its net contribution during 2004 is ?
(D) If production is 250,000 tons in 2003 and 150,000 tons in 2003, what is the net contribution during 2002 and 2003 combined?
Correct Answer:
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(B)...
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