Question: This is a subjective question, hence you have to write your answer in the Text-Field given below. (i) What are the major cost factors considered

 This is a subjective question, hence you have to write your

This is a subjective question, hence you have to write your answer in the Text-Field given below. (i) What are the major cost factors considered in process selection? How is the cross-over chart used for process selection? [2M] (ii) California Gardens, Inc., prewashes, shreds, and distributes a variety of salad mixes in 2-pound bags. Operations VP, is considering a new HiSpeed shredder to replace the old machine, referred to in the shop as "Clunker." Hi-Speed will have a fixed cost of $85,000 per month and a variable cost of $1.25 per bag. Clunker has a fixed cost of only $44,000 per month, but a variable cost of $1.75. Selling price is $2.50 per bag. [4M] a. What is the crossover point in units for the processes? b. What is the monthly profit or loss if the company changes to the Hi-Speed shredder and sells 60,000 bags per month

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