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A company has to decide among three processes that makes the same product but with different capacities, to implement next fall. The information on the processes are:

Process 1-Fixed Cost $20,000, Variable Cost $12

Process 2-Fixed Cost $15,000, Variable Cost $16

Process 3-Fixed Cost $12,000, Variable Cost $20

The company estimated the demand to be between 700 and 1200 products. Using a graph, explain which process should the company select.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91877148

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