points) Three production processes, A, B, and C have the following cost structure:

Fixed Cost Process Per Year

A $120000

B $90000

C $80000

Variable Cost Per Unit

$3.0 $4.0 $4.5

(1) (4 points) What is the most economical process for a volume of 8000 units? (Prob- lem 1.1.1 in notes)

(2) (4 points) How many units per year must be sold with each process to have annual

profits of $50000 if the selling price is $6.95 per unit?

(3) (4 points) What is the break-even volume for each process? (Problem 1.1.1 in notes)