Multiple Choice
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
Correct Answer:

Verified
Correct Answer:
Verified
Q31: Sunderland Furniture is determining the make or
Q32: A bottling machine produces an average of
Q33: A bottling machine produces an average of
Q34: A bottling machine produces an average of
Q35: Cherry Street Creamery served an average of
Q37: Sunderland Furniture is determining the make or
Q38: A major packaging company is interested in
Q39: Cherry Street Creamery served an average of
Q40: Fabricating Solutions in Minnesota manufactures widgets, and
Q41: A bottling machine produces an average of