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

question 8

Multiple Choice

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 production volume at which costs of Processes A and B are equal. $$\begin{array} { | l | l | l | } \hline \text { Process } & \begin{array} { l } \text { Fxed } \\\text { Cost }\end{array} & \begin{array} { l } \text { Variable Cost per } \\\text { Unit }\end{array} \\\hline \mathrm { A } & \$ 30,000 & \$ 40 \\\hline \mathrm { B } & \$ 40,000 & \$ 30 \\\hline \mathrm { C } & \$ 80,000 & \$ 20 \\\hline\end{array}$$

• A)2,000
• B)3,000
• C)4,000
• D)1,000

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A formal gathering of the board of directors of an organization to discuss and make decisions on company policy and management issues.

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A type of stock that provides dividends and certain privileges in the event of liquidation before common stockholders.

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A type of equity security that represents ownership in a corporation, giving holders voting rights and a share in the company’s profits via dividends.