ABC Corporation would like to evaluate three production processes (A,B,and C)to accommodate the changes in demand for its products.The fixed and variable cost per unit are tabled here.Determine the process to be selected when the production volume is 6,000 units. $$\begin{array} { | l | l | l | }
\hline \text { Process } & \text { Fixed Cost } & \text { Variable Cost per Unit } \
\hline \mathrm { A } & \$ 30,000 & \$ 40 \
\hline \mathrm { B } & \$ 40,000 & \$ 30 \
\hline \mathrm { C } & \$ 80,000 & \$ 20 \
\hline
\end{array}$$

Question

ABC Corporation would like to evaluate three production processes (A,B,and C)to accommodate the changes in demand for its products.The fixed and variable cost per unit are tabled here.Determine the process to be selected when the production volume is 6,000 units. $$\begin{array} { | l | l | l | } 
\hline \text { Process } & \text { Fixed Cost } & \text { Variable Cost per Unit } \
\hline \mathrm { A } & \$ 30,000 & \$ 40 \
\hline \mathrm { B } & \$ 40,000 & \$ 30 \
\hline \mathrm { C } & \$ 80,000 & \$ 20 \
\hline
\end{array}$$

Quizplus · Accepted Answer

To determine the best process for a production volume of 6,000 units, calculate the total cost for each process (Fixed Cost + Variable Cost per Unit * 6,000 units) and compare. Process A: $30,000 + $40*6,000 = $270,000. Process B: $40,000 + $30*6,000 = $220,000. Process C: $80,000 + $20*6,000 = $200,000. Process C has the lowest total cost at $200,000.

ABC Corporation Would Like to Evaluate Three Production Processes (A,B,and