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QUESTION 3 The next 4 questions refer to the following situation: In the provided blank, insert the letter that corresponds to the correct answer. For

QUESTION 3
The next 4 questions refer to the following situation:
In the provided blank, insert the letter that corresponds to the correct answer. For example, if the correct answer is "a)1.990", insert only "a" as the correct answer.
I - What is the crossover point for these two processes? The letter associated with the correct answer is
A)1550 units
B)1600 units
C)1800 units
D)2300 units
E) None of the above
II - Which process offers the lowest cost to produce 1,500 units, what is the minimum possible cost? The letter associated with the correct answer is
A) For a volume of 1500 units, the process focus is cheaper and the minimum cost is $93,000
B) For volume of 1500 units, the repetitive process is cheaper and the minimum cost is $93,000
C) For a volume of 1500 units, the process focus is cheaper and the minimum cost is $103,000
D) For volume of 1500 units, the repetitive process is cheaper and the minimum cost is $103,000
E) None of the above
III - If the company forecast an annual demand of 1900 units and the price of the product is $70 each, the maximum possible profit is equal to: The letter associated with the correct answer is
A) $24,000
B) $25,000
C) $26,000
D) $27,000
E) None of the above
IV - If the company forecast an annual demand of 1,400 units and the price of the product is $80 each, the maximum possible profit is equal to: The letter associated with the correct answer is
A) $14,000
B) $15,000
C) $16,000
D) $17,000
E) None of the above
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