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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Definitions:

Reward Systems

are mechanisms set in place by organizations to recognize and reward performance and encourage certain behaviors in employees.

Teamwork

The process of people actively working together interdependently to accomplish common goals.

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To strive against opponents for the purpose of achieving an objective, such as winning a game, securing a job, or achieving market dominance.

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A resolution to a dispute or negotiation that is beneficial to all parties involved.