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

Question 36

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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.
-If the projected total demand is for 6,000 units, which process should be used?


A) Process A
B) Process B
C) Process C
D) Any of the three processes can be chosen, as the processes have the same total cost for 6,000 units.
E) Do not have enough information to compute

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