A company is evaluating which of two alternatives should be used to produce a product that will sell for $35.00 per unit. The following cost information describes the two alternatives: If total demand (volume) is 150,000 units, then the company should
A) select Process A with a profit of $1,300,000 to maximize profit.
B) select Process B with a profit of $750,000 to maximize profit.
C) select Process A with a profit of $1,000,000 to maximize profit.
D) select Process B with a profit of $1,050,000 to maximize profit.

Question

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35.00 per unit. The following cost information describes the two alternatives:  If total demand (volume) is 150,000 units, then the company should
A) select Process A with a profit of $1,300,000 to maximize profit. 
B) select Process B with a profit of $750,000 to maximize profit. 
C) select Process A with a profit of $1,000,000 to maximize profit. 
D) select Process B with a profit of $1,050,000 to maximize profit.

Quizplus · Accepted Answer

The Answer of A company is evaluating which of two alternatives should be used to produce a product that will sell for $35.00 per unit. The following cost information describes the two alternatives:  If total demand (volume) is 150,000 units, then the company should
A) select Process A with a profit of $1,300,000 to maximize profit. 
B) select Process B with a profit of $750,000 to maximize profit. 
C) select Process A with a profit of $1,000,000 to maximize profit. 
D) select Process B with a profit of $1,050,000 to maximize profit.

A Company Is Evaluating Which of Two Alternatives Should Be