Three production processes-A,B,and C-have the following cost structure:

a.What is the most economical process for a volume of 8,000 units?
b.How many units per year must be sold with each process to have annual profits of $50,000 if the selling price is $6.95 per unit?
c.What is the breakeven volume for each process?

Question

Three production processes-A,B,and C-have the following cost structure:
​  ​ 
a.What is the most economical process for a volume of 8,000 units?
b.How many units per year must be sold with each process to have annual profits of $50,000 if the selling price is $6.95 per unit?
c.What is the breakeven volume for each process?

Quizplus · Accepted Answer

The Answer of Three production processes-A,B,and C-have the following cost structure:
​  ​ 
a.What is the most economical process for a volume of 8,000 units?
b.How many units per year must be sold with each process to have annual profits of $50,000 if the selling price is $6.95 per unit?
c.What is the breakeven volume for each process?

Three Production Processes-A,B,and C-Have the Following Cost Structure