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The ABC company wants to choose between two new processes, B and C. The fixed cost for process B is $40,000 and for process C, $25,000. The variable cost for B is $3.00 per unit and for C, $8.00 per unit. The two processes have the same total costs at the following:

a. 3,000 units and the total cost of $49,000.

b. 3,000 units and the total cost of $15,000.

c. 15,000 units and the total cost of $3,000.

d. 49,000 units and the total cost of $3,000.

e. none of the above.

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M92437464

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