Unformatted text preview: ____ the first process (√) ____ the second process Operations and Engineering have found a way to reduce the cost of the second process, such that the fixed costs for this process decrease from $400,000 to $300,000 annually. All other costs remain the same (1 st process fixed = $50,000 / year, 1 st process variable = $700 / unit, 2 nd process variable = $200 / unit). d. What is the new break even quantity between the two processes? [500 units / year] e. Does this change the process selection for the new sales volume of 600 units / year? ____ [yes] If so, which process should be selected? ____ the first process [0 – 500] ____ the second process [500+] (√)...
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- Spring '10