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Process a Has Fixed Costs of $1000 and Variable Costs

Question 83

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 $15 per unit. The crossover point between process A and process B is


A) 50 units
B) 200 units
C) $2,500
D) $5,000
E) $9,500

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