Author Question: Process A has fixed costs of $1000 and variable costs of $5 per unit. Process B has fixed costs of ... (Read 145 times)

mcmcdaniel · **on:** Dec 3, 2019

Question 1

All of the following are true about a quasi-custom product except
◦ is often the output of repetitive focus facilities.
◦ it obtains both the economic advantage of the continuous and the custom advantage of the low-volume, high-variety model.
◦ is a valid description of a fast food sandwich.
◦ is only possible when the focus strategy of service productivity improvement is in use.
◦ gets its apparent customization from the combinations available from a small number of modules.

Question 2

Process A has fixed costs of $1000 and variable costs of $5 per unit. Process B has fixed costs of $500 and variable costs of $15 per unit. The crossover point between process A and process B is
◦ $9,500.
◦ 50 units.
◦ $2,500.
◦ 200 units.
◦ $5,000.

Carliemb17 · **Reply #1 on:** Dec 3, 2019

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