Class Exercise 3 An organization is considering three process configuration options. Process A has fixed costs of $3,000 per month, and variable costs of $10 per unit. Process B has fixed costs of $12,000 per month and variable costs of $2 per unit. Process C has fixed costs of $50,000 per month and variable costs of $1 per unit. a) If the company produced 20,000 units, what would be its cost under each of the three choices? b) Which process offers the lowest cost to produce 40,000 units? What is that cost? c) For what range of outputs is each process appropriate (based on cost)? P7-3