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Question 1.1: Three production processes - A, B, and C - have the following cost structure: the selling price is 6.90 per unit Process Fixed

Question 1.1:

Three production processes - A, B, and C - have the following cost structure:

the selling price is 6.90 per unit

Process

Fixed Cost

per Year

Variable Cost

per Unit

A

141262

3.59

B

90393

3.68

C

82595

5.47

1. What is the cost of process A for a volume of 8900 units? (round to the nearest cent).

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