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:

AIDA Model

A marketing framework that outlines the process for achieving successful advertising and sales, standing for Attention, Interest, Desire, and Action.

Limit Scope

The process of defining or restricting the extent of activities or areas to be covered by a project, research, or discussion.

Audience Needs

The requirements or expectations of the recipients or viewers of a message or performance, considering their interests or demands.

Summarizing

The act of distilling the main ideas or crucial elements of a larger body of information into a concise overview.