What is the crossover point for these processes? for what, Ask an Expert

Management Studies

A product is currently made in a process-focused shop, where fixed costs are $9,000 per year and variable cost is $50 per unit. The firm is considering a fundamental shift in process, to repetitive manufacture. The new process would have fixed costs of $90,000, and variable costs of $5. What is the crossover point for these processes? For what range of outputs is each process more appropriate (better)? Draw the crossover chart

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M985002

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