Question: A firm is considering two process alternatives, A andB.Alternative A would have the annual fixed cost of $10,000 and variable cost of $8 per unit.

A firm is considering two process alternatives, A andB.Alternative A would have the annual fixed cost of $10,000 and variable cost of $8 per unit. Alternative B would have the annual fixed cost of $12,000 and variable costs of $4 per unit. At what volume processesBis preferred?

a. From 0 up to 500 units.

b. From500 units and up.

c. From 0 up to 800 units.

d. From800 units and up.

e. ProcessB is not preferred for any number of units.

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