27. A manufacturing manager has to choose one of the following two processes: Process 1 and Process 2. The first process

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27 A Manufacturing Manager Has To Choose One Of The Following Two Processes Process 1 And Process 2 The First Process 1 (30.61 KiB) Viewed 10 times

27. A manufacturing manager has to choose one of the following two processes: Process 1 and Process 2. The first process (Process 1) has a fixed cost of $ 4,200 and a variable cost of $ 7.9 per unit. The second process (Process 2) has a fixed cost of $ 6,500 and a variable cost of $ 10.2 per unit. Based on this information, which of the following statements is true? a. It is impossible for one process to have both of its costs lower than those of another process. b. The point of indifference is approximately 4500 units. c. The second process should be selected for a volume higher than 92,000 units. d. The first process is cheaper than the second one at all volumes; there is no point of indifference e. None of the above