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Process a Has Fixed Costs of $1000 and Variable Costs

Question 187

Multiple Choice

Process A has fixed costs of $1000 and variable costs of $5 per unit. Process B has fixed costs of $500 and variable costs of $7.50 per unit. What is the crossover point between process A and process B?


A) 50 units
B) 200 units
C) 250 units
D) $5,000
E) $9,500

Correct Answer:

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