solution

Al Quds Pipes Company produces pipes on two production lines. The fixed and variable costs are shown below.

Line 1 Fc = 16000 Vc 16

Line 2 FC= 20000 Vc 14

Price of each unit is 42

If the full capacity of line 1 under ideal conditions is 1500 unit , due to space restrictions and shortage of raw material it was found to be only 1300 units on average , for some reasons today they only produced 1200 units.

which production line is more profitable for the company. show your calculations

what is the break even point for line 2

what is the cross over point.

what is the utilization and efficiency of line 1