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Three Processes Have the Following Costs: Process a Has a Fixed

Question 20

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Three processes have the following costs: Process A has a fixed cost of $2,000 and variable cost of $3.00/unit. Process B's fixed cost is $4,000 and variable cost is $2.60/unit. Process C's fixed cost is $8,000 and variable cost is $2.40/unit.
-What level of output represents the break-even point between Process B and Process C?


A) Between 3,000 and 6,000 units
B) Between 6,000 and 12,000 units
C) Between 12,000 and 18,000 units
D) Between 18,000 and 24,000 units
E) Between 24,000 and 30,000 units

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