Highgrove Industries Must Decide Which Process Technology to Adopt Given

question 19

Essay

Highgrove Industries must decide which process technology to adopt given the information below.
$\begin{array}{lccc}\underline{\text { Cost}} & \underline{\text { Technology A }}&\underline{\text { Technology B }} &\underline{\text { Technology C }}\\\text { Price per unit } & \$ 3 & \$ 3 & \$ 3 \\\text { Fixed costs per year } & \$ 80,000 & \$ 120,000 & \$ 130,000 \\\text { Variable costs per unit } & \$ 2.20 & \$ 1.85 & \$ 1.65\end{array}$
Which one of the process technologies would you recommend they adopt based on breakeven analysis if they wish to minimize demand risks?

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Definitions:

Bar Chart

A graphical display used to compare the quantities or frequencies of different categories or groups using bars.

Negative Values

Principles or standards of behavior that are considered harmful or undesirable in a particular society.

Transformations

Transformations refer to significant changes or alterations in form, structure, or appearance.

Flowcharts

Visual diagrams that represent a sequence of steps or actions in a process, often used for planning or analyzing.