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South Plains Manufacturing Inc. must select a process for its new product, TT2, from among three different altematives. RMC gather the following cost data.
South Plains Manufacturing Inc. must select a process for its new product, TT2, from among three different altematives. RMC gather the following cost data. For what volume of demand would each process be desired? South Plains Manufacturing Cost Data Process A Process B Process C Fixed Cost $5,000 $50,000 $20,000 Variable Cost per unit $10 $2 $4 From 0 to 2,500 Choose A From 2,500 to 15,000 Choose C From 15,000 to infinity Choose B From 0 to 2,500 Choose A From 2,500 to infinity Choose C Never choose B From 0 to 5.625 Choose A From 5,625 to 15,000 Choose B From 15,000 to infinity Choose C From 0 to 5.625 Choose A From 5,625 to infinity Choose B Never Choose C Always Choose A Never Choose B or C
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