Process X Has Fixed Costs of $10,000 and Variable Costs

question 9

Multiple Choice

Process X has fixed costs of $10,000 and variable costs of $2.40 per unit. Process Y has fixed costs of $9,000 and variable costs of $2.25 per unit. Which of the following statements is TRUE?

• A) The crossover point is approximately 6667 units.
• B) It is impossible for one process to have both of its costs lower than those of another process.
• C) Process Y is cheaper than process X at all volumes.
• D) Process X should be selected for very large production volumes.
• E) Process X is more profitable than process Y and should be selected.

Evaluate the role of global segmentation, targeting, and positioning in international marketing strategies.

Analyze the factors affecting international pricing strategies, including tariffs, quotas, and currency exchange.

Understand the complexities and strategic considerations of franchising as a global entry strategy.

Recognize the importance of adapting marketing strategies to meet the needs of diverse global markets.

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Definitions:

Authorized Agent

An individual or entity that has been given the legal authority to act on behalf of another person or entity in business transactions or other matters.

Warranties On Presentment

Guarantees made concerning the validity, authenticity, and condition of a negotiable instrument when it is presented for payment or acceptance.

Payor

A payor, in financial transactions, is the party that makes a payment to another party, the payee, often in fulfillment of an obligation such as a bill, loan, or settlement.

Acceptor

The party who agrees to pay a bill of exchange, such as a draft or check, upon its presentation.