Process

A company is evaluating which of two alternatives should be used to produce a product that will sell for $$35\mathrm{.}00$ per unit. The following

cost information describes the two alternatives:

Process

A

B

Fixed Cost

$$500,000$ $$750,000$

Variable Cost per

Unit

$$25\mathrm{.}00$

$$23\mathrm{.}00$

If total demand $($volume$)$ is $120,000$ units, then the company should

O select Process A with a profit of $$700,000$ to maximize profit.

O select Process B with a profit of $$690,000$ to maximize profit.

O select Process A with a profit of $$940,000$ to maximize profit.

O select Process B with a profit of $$450,000$ to maximize profit.

d Media

eTextbook and N