Question: A firm is considering two process alternatives, A and B. Alternative A would have the annual fixed cost of $100,000 and variable cost of $22

A firm is considering two process alternatives, A and B. Alternative A would have the annual fixed cost of $100,000 and variable cost of $22 per unit. Alternative B would have the annual fixed cost of $120,000 and variable cost of $20 per unit. At what volume process A is preferred?

a. From 0 up to 2500 units.

b. From 2500 to 4000 units.

c. From 0 up to 10000 units.

d. From 10000 units and up.

e. From 4000 units and up.

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