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

question 81

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 process to be selected when the production volume is 6,000 units. $$\begin{array} { | l | l | l | } \hline \text { Process } & \text { Fixed Cost } & \text { Variable Cost per Unit } \\\hline \mathrm { A } & \$ 30,000 & \$ 40 \\\hline \mathrm { B } & \$ 40,000 & \$ 30 \\\hline \mathrm { C } & \$ 80,000 & \$ 20 \\\hline\end{array}$$

• A)Process A
• B)Process B
• C)Process C
• D)cannot be determined

---

Definitions:

Condoleezza Rice

An American political scientist and diplomat who served as the 66th United States Secretary of State, and was the first African American woman to hold the post.

Secretary of State

A senior official in the federal government responsible for conducting foreign affairs and diplomacy.

National Security Advisor

A senior official within the executive branch of the U.S. government who serves as the chief in-house advisor to the President on national security issues.

Hurricane Katrina

A powerful and catastrophic hurricane that struck the Gulf Coast of the United States in August 2005, causing widespread destruction and significant loss of life.