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

question 28

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 B and C 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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Definitions:

Product Differentiation

The process of distinguishing a product or service from others in the market to make it more attractive to a specific target market.

Economic Analysis

The process of examining statistics, market trends, and financial principles to make a comprehension of the economic landscape for decision-making purposes.

Product Promotion

Product Promotion involves various techniques and strategies used by businesses to inform, persuade, and remind consumers about their products and services.

Strategic Pricing

Involves setting prices based on market factors, competition, and company goals to maximize profitability or market share.