Question: Calvin makes rubber shoes. He has three process options with the following costs in dollars: Process A: fixed cost of $ 4 0 , 0

Calvin makes rubber shoes. He has three process options with the following costs in dollars:
Process A: fixed cost of $40,000 and per-unit variable cost of $100
Process B: fixed cost of $100,000 and per-unit variable cost of $50
Process C: fixed cost of $250,000 and per-unit variable cost of $20
Calvin expects to sell 1000 units at a price of $250 per unit. How much profit will Calvin earn if he chooses the process w? the lowest total cost at the forecasted demand (i.e. he chooses the process optimally)?
$750,000
$250,000
$1,250,000
$110,000
$140,000
 Calvin makes rubber shoes. He has three process options with the

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