Question: Process Crossover and Break-Even Problem (30 pts) Osaka, Inc. has a contract for 120,000 units of a new product. Naomi Reisman, the owner, has

Process Crossover and Break-Even Problem (30 pts) Osaka, Inc. has a contract

Process Crossover and Break-Even Problem (30 pts) Osaka, Inc. has a contract for 120,000 units of a new product. Naomi Reisman, the owner, has calculated the cost for three process alternatives: general-purpose equipment (GPE), flexible manufacturing system (FMS), and dedicated automatic line (DAL). Process Alternatives GPE Fixed Costs ($) Variable Costs ($) Selling Price ($) 200,000 10 12 FMS DAL 400,000 8 12 800,000 6 12 Which process should Naomi choose? (20 pts) Does this contract bring profit to the company? (10 pts) Please include the calculation steps to justify your choices.

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