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

Question 3

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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 fixed cost is $4,000 and variable cost is $2.60/unit. Process C 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

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