Use breakeven analysis in order to select the best process, Ask an Expert

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Use breakeven analysis in order to select the best process. Assume revenue is the same for either process A or B. Answer questions a) and b).

Process A: Fixed cost = $70,000 per month Variable cost = $8 per unit

Process B: Fixed cost = $40,000 per month Variable cost = $20 per unit

a) What is the breakeven point?

b) If you anticipate selling 4000 units per month, which process do you select and why?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92516106

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