Processes for manufacturing span the spectrum from more labor intensive with lower fixed costs to more machinery intensive with higher fixed costs. The decision as to which process to select thus depends on the estimated market demand. For the following two processes, answer the associated questions.

Process A Labor Intensive Process B Capital Intensive

FC: $40,000 $70,000

VC: $15/unit $10/unit

SP: $20/unit $21/unit

If the estimated market demand is 10,000 units, which process should be selected?

a) Process A

b) Process B

c) Can't be determined w/given information