Process a Has Fixed Costs of $1000 and Variable Costs

question 187

Multiple Choice

Process A has fixed costs of $1000 and variable costs of $5 per unit. Process B has fixed costs of $500 and variable costs of $7.50 per unit. What is the crossover point between process A and process B?

• A) 50 units
• B) 200 units
• C) 250 units
• D) $5,000
• E) $9,500

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Definitions:

Trunnions

Trunnions are cylindrical protrusions used as a pivot or mounting point, commonly found in cannons, tanks, and heavy machinery for rotation or support.

Metal Fatigue

The phenomenon where metal experiences weakening or failure after repeated stress or strain over time.

U-joint Trunnion

Part of a universal joint that allows for the transfer of rotational movement in multiple directions, accommodating changes in angle between the parts it connects.

Spalling

The process where surface layers of a material break off in flakes or scales, often due to mechanical stress or corrosion.