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