Question: BC Products uses two packaging processes, Process I and Process II, for a product that it manufactures. The fixed and per unit variable costs for

BC Products uses two packaging processes, Process I and Process II, for a product that it manufactures. The fixed and per unit variable costs for the two processes are reported in the following table. The selling price for the product is 5/unit.

Package Process Fixed Cost Variable Cost/Unit
Process I $21200 $3.5
Process II $34000 $2.4

What is the breakeven quantity for Process I? What is the breakeven quantity for Process II? What is minimum quantity for which Process II is cheaper than Process?

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