Question: A product is currently made in a process - focused shop, where fixed costs are $ 9 , 0 0 0 per year and variable

A product is currently made in a process-focused shop, where fixed costs are $9,000 per year and variable cost is $40 per unit. The firm is considering a fundamental shift in process, to repetitive manufacture. The new process would have fixed costs of $120,000, and variable costs of $8. For what range of outputs is each process appropriate?
Question 39 options:
For volumes over 3469, the process focus is cheaper; for volumes under 3469 units, the repetitive focus is cheaper.
The repetitive focus is always cheaper.
For volumes under 3469, the process focus is cheaper; for volumes over 3469 units, the repetitive focus is cheaper.
The process focus is always cheaper

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