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Process Fixed cost per year variable cost per unit a $120,000 $3.00 b 90,000 4.00 c 80,000 4.50 Three production processes – A, B, and C – have the following cost structures: a. What is the most economical (least expensive) process for a volume of 8,000 units? Process C b. What is the total cost of that process? $ c. Which process requires the lowest production volume to have annual profits of $50,000 if the selling price is $6.95 per unit? d. How many units are required for that process to have annual profits of $50,000 if the selling price is $6.95 per unit? units e. What is the break-even volume for process B if the selling price is $6.95 per unit? units

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