Question: Extra Problems for Classroom Review - Choosing Between Competing Processes Excel Company must choose between making its product with automated equipment or with more flexible

Extra Problems for Classroom Review - Choosing

Extra Problems for Classroom Review - Choosing Between Competing Processes Excel Company must choose between making its product with automated equipment or with more flexible equipment, but more labor assembly. The facts are given in the table about fixed costs, selling prices and variable costs. Automated Flexible Equip. w/ Process Assembly Labor Selling price $25 $25 Variable costs $10 $18 Fixed costs $4,000,000 $1,000,000 (a) At what volume of demand (Q) would the processes produce the same profit? (6) What process should be chosen if expected sales demand is 500,000 units? (C) How much profit will be made if 500,000 units are sold

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