A product is currently made in a process-focused shop, where fixed costs are $9000 per year and variable cost is $50 per unit. The firm is considering a fundamental shift in process, to repetitive manufacture. The new process would have fixed costs of $90,000, and variable costs of $5.

What is the crossover point for these processes?

For what range of outputs is each process appropriate?

Answer rating: 100% (QA)

Part A Crossover Rate New Process Fixed Costs Old Proces... View the full answer