A company is evaluating which of two alternatives should be used to produce a product that will sell for $35.00 per unit. The following cost information describes the two alternatives: For what level of volume (output) would the firm prefer Process A to Process B?
A) for all volume levels greater than 75,000
B) for all volume levels greater than 97,500
C) for all volume levels greater than 117,500
D) for all volume levels greater than 125,000

Question

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35.00 per unit. The following cost information describes the two alternatives:  For what level of volume (output) would the firm prefer Process A to Process B?
A) for all volume levels greater than 75,000 
B) for all volume levels greater than 97,500 
C) for all volume levels greater than 117,500 
D) for all volume levels greater than 125,000

Quizplus · Accepted Answer

The Answer of A company is evaluating which of two alternatives should be used to produce a product that will sell for $35.00 per unit. The following cost information describes the two alternatives:  For what level of volume (output) would the firm prefer Process A to Process B?
A) for all volume levels greater than 75,000 
B) for all volume levels greater than 97,500 
C) for all volume levels greater than 117,500 
D) for all volume levels greater than 125,000

A Company Is Evaluating Which of Two Alternatives Should Be