Question: 6 ) Process X has fixed costs of $ 1 0 , 0 0 0 and variable costs of $ 2 . 4 0 per

6) Process X has fixed costs of $10,000 and variable costs of $2.40 per unit. Process Y has fixed costs of $9,000 and variable costs of $2.25 per unit. Which of the following statements is TRUE? _____A) The crossover point is approximately 6667 units.B) It is impossible for one process to have both of its costs lower than those of another process.C) Process Y is cheaper than process X at all volumes.D) Process X should be selected for very large production volumes.E) Process X is more profitable than process Y and should be selected.

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