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You have the option of using three processes. The job shop process has a fixed cost of $1,000 per month and a variable cost of
You have the option of using three processes. The job shop process has a fixed cost of $1,000 per month and a variable cost of $15 per unit. The batch process has a fixed cost of $3,500 per month and a variable cost of $10 per unit. The line process has a fixed cost of $11,000 per month and a variable cost of 5. Each process can produce the same product. What is the crossover quantity between the batch process and the job shop where each process has the same costs?
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