A)

B)

The cost management team is analyzing two alternative production processes for a new product that will sell for $120 per unit. The marketing team is projecting that 10,000 units will sell annually. The two production processes have different cost structures as shown below. - Process A: $55 per unit variable cost; Annual fixed costs $200,000 - Process B: $50 per unit variable cost; Annual fixed costs $275,000 The executive team has set a target income of $400,000 for this new product. Based on an analysis of costs, sales volume, and profit for each process, what course of action should the cost management team recommend? Reject both production processes. Neither process will achieve the target income. Accept Process A and reject Process B. Only Process A will achieve the target income. Accept Process B and reject Process A. Only Process B will achieve the target income. Accept either process. Both processes will achieve the target income. Marston Enterprises sells three products: X,Y, and Z. X is the company's most profitable product; Z is the least profitable. Which of the following events will definitely decrease the firm's overall breakeven point for the upcoming accounting period? A decrease in Z's selling price An increase in X's raw material cost An increase in anticipated sales of product X relative to sales of Y and Z