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

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.
-April Ross, a procurement specialist with Quicken Tools, is determining the make-or-buy quantity for a new product. She can have them made for $65 each, with an equipment investment of $25,000, or Quicken could buy them for $90. Based on the break-even quantity computed in Question 50, find the break-even cost.

A) $187,500
B) $155,000
C) $122,500
D) $90,000
E) $57,500