Solved

ABC Corporation Would Like to Evaluate Three Production Processes (A,B,and

Question 25

Multiple Choice

ABC Corporation would like to evaluate three production processes (A,B,and C) to accommodate the changes in demand for its products.The fixed and variable cost per unit are tabled here.Determine the process to be selected when the production volume is 3,000 units.  Process  Fxed  Cost  Variable Cost per  Unit A$30,000$40B$40,000$30C$80,000$20\begin{array} { | l | l | l | } \hline \text { Process } & \begin{array} { l } \text { Fxed } \\\text { Cost }\end{array} & \begin{array} { l } \text { Variable Cost per } \\\text { Unit }\end{array} \\\hline \mathrm { A } & \$ 30,000 & \$ 40 \\\hline \mathrm { B } & \$ 40,000 & \$ 30 \\\hline \mathrm { C } & \$ 80,000 & \$ 20 \\\hline\end{array}


A) Process A
B) Process B
C) Process C
D) cannot be determined

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions