Cost-Volume Analysis
Include graph interpretation below the graph. Make sure it isclear, complete, and easy to find.
A manager is trying to determine which of three productionprocesses to implement to produce a component for a new productline. Process A would entail a variable cost of $17 per unit and anannual fixed cost of $150,000. Process B would entail a variablecost of $11 per unit and an annual fixed cost of $250,000. ProcessC would entail a variable cost of $20 per unit and an annual fixedcost of $180,000.
a. Develop three separate models inyour spreadsheet to calculate Total cost for each process.
The models must be flexible and able to calculate Total cost forany Quantity produced.
b. Create a Cost-Volume graph that shows total cost lines forall three options.
(Volume should range from 0 to 30,000)
c. Write an interpretation of your graph
Please show the formula that used if possible.
