A Company Is Evaluating Which of Two Alternatives Should Be

question 22

Multiple Choice

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 120,000 units,then the company should

• A)select Process A with a profit of $940,000 to maximize profit.
• B)select Process B with a profit of $450,000 to maximize profit.
• C)select Process A with a profit of $700,000 to maximize profit.
• D)select Process B with a profit of $690,000 to maximize profit.

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Definitions:

Tone

The quality or character of sound, or in writing and speech, the attitude or approach that the author takes towards the subject.

Tetanus

Summation of muscle contractions to a level of maximum sustainability.

Lactic Acid

An organic compound produced in muscles during strenuous activity through anaerobic metabolism, often associated with muscle fatigue.

Strenuous

Requiring or using a lot of physical or mental effort and energy.