Question: product is currently made in a process-focused shop, where fixed costs are $10,000 per year and variable costs are $40 per unit. The firm is

product is currently made in a process-focused shop, where fixed costs are $10,000 per year and variable costs are $40 per unit. The firm is considering a fundamental shift in process, to repetitive manufacturing. The new process would have fixed costs of $80,000, and variable costs of $20. What is the crossover point for these processes?

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