Process A has fixed costs of $1000 and variable costs of $5 per unit. Process B has fixed costs of $500 and variable costs of $7.50 per unit. What is the crossover point between process A and process B? 50 units 250 units $9,500 $5,000 200 units

Respuesta :

Answer:

200 units

Explanation:

The computation of the crossover point between process A and process B is shown below:

Let us assume the cross over point be x

We made a question i.e given below:

Total Cost of A = Total Cost of B

$1,000 + 5x =  $500 +7.50x

$1,000 - $500 = 7.50x - 5x

$500 = 2.5x

So, the x is 200 units

Hence, the cross over point is 200 units by applying the above formula so that the correct units could arrive

200 units are the correct option

When we computation of the crossover point between process A and process B is shown below:

Computation

Let us assume the cross over point be x

Total Cost of A = Total Cost of B

Then $1,000 + 5x = $500 +7.50x

Then $1,000 - $500 = 7.50x - 5x

Now $500 = 2.5x

So, the x is 200 units

Hence, the cross over point is 200 units by applying the above formula so that the correct units could arrive.

Find out more information about computation here:

https://brainly.com/question/24643173

ACCESS MORE
EDU ACCESS