On the Crossover Chart Where the Costs of Two or More

question 2

Multiple Choice

On the crossover chart where the costs of two or more location alternatives have been plotted,the quantity at which two cost curves cross is the quantity at which:

• A)fixed costs are equal for two alternative locations.
• B)variable costs are equal for two alternative locations.
• C)total costs are equal for all alternative locations.
• D)fixed costs equal variable costs for one location.
• E)total costs are equal for two alternative locations.

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Definitions:

Material B

This term could refer to a secondary or alternative material used in manufacturing or production processes.

Pounds

A unit of weight measurement commonly used in Britain and the United States, equal to 0.453592 kilograms.

Budgeted Units

An estimated quantity of goods or services that a company plans to sell or produce within a specific period.

Production

The process of creating, manufacturing, or using goods and services.