Use breakeven analysis in order to select the best process

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Reference no: EM132218924

Use breakeven analysis in order to select the best process. Assume revenue is the same for either process A or B. Answer questions a) and b).

Process A: Fixed cost = $60,000 per month Variable cost = $7 per unit

Process B: Fixed cost = $35,000 per month Variable cost = $15 per unit

a) What is the breakeven point?

b) If you anticipate selling 4000 units per month, which process do you select and why?

Reference no: EM132218924

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