Question: Process A has Fixed cost of $2500 and variable cost of $10 per unit. Process B has fixed cost of $1000 and variable costs of

Process A has Fixed cost of $2500 and variable cost of $10 per unit.

Process B has fixed cost of $1000 and variable costs of $25 per unit.

What is the cross over point for process A and Process B?

If we need to manufacture 75 units, which Process should we chose?

A): Its fixed at $1500 for quantity of 75 units

B) C = 100 units but need 75 units at Process A

C) C = 100 unit but need 75 unit at Process B

D) C = 200 unit but need 75 units at Process B

E) C = 200 unit but need 75 units so choose Process A

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