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Arktec Manufacturing capacity optionsDetermine the total cost for each demand optionTotal Cost = Fixed Cost + (Variable Cost x Demand Level)Tc = Fc X (Vc X Dl)TcFcVcDlTotal Cost = FC X (VC X DL)Fixed Cost$ 500.000,00Variable Cost$2,00Demand Level25.000 a)75.000 b)Option 1a) Demand Level 25,000 unitsTc = $ 500.000,00 + (2 * 25,000)Tc = $ 550.000,00b) Demand Level 75,000 unitsTc = $ 500.000,00 + (2 * 75,000)Tc = $ 650.000,00Option 2TcTotal Cost = FC X (VC X DL)FcFixed Cost$ 100.000,00VcVariable Cost$10,00DlDemand Level25.000 a)75.000 b)a) Demand Level 25,000 unitsTc = $ 100.000,00 + (10 * 25,000)Tc = $ 350.000,00b) Demand Level 75,000 unitsTc = $ 100.000,00 + (10 * 75,000)Tc = $ 850.000,00Indifference PointCost Indifference Point = Differential fixed cost/Differential variable cost per unitCIP = DFC/DVCCIPDFCDVCCost Indifference Point = DFC/DVCDifferential fixed cost = Fixed Cost (a) - Fixed Cost (b)Differential variable cost per unit = Variable Cost (a) - Variable Cost (b)a)Fc Fixed CostVc Variable Costb)Fc Fixed CostVc Variable CostCIP = DFC/DVCCIP = (500,000 - 100,000) / 10 - 2CIP = 400,000 / 8CIP =50.000,00iable cost per unit$ 500.000,00$2,00$ 100.000,00$10,00UnitsExpected Value = (Total Cost*Probability)+(Total Cost*Probability)...Tc = Fc X (Vc X Dl)Option 1TcTotal Cost = FC X (VC X DL)FcFixed Cost$ 500.000,00VcVariable Cost$2,00DlDemand Level25.00060.000100.000Probabili ...


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