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

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Definitions:

Operational Activities

Actions and tasks associated with the day-to-day operations of a business, focusing on core business activities.