A furniture manufacturing company has two main processes. Process Alpha thatmakes dinning table and chair with the variable costs of $2.40 per unit. Process Betathat makes bedroom furniture with the variable costs of $2.25 per unit. The fixedcost of process Alpha and Beta is $10,000 and $9,000 respectively. Which of thefollowing statements is true?Process Alpha should be selected for very large production volumes.) The break-even point is approximately 6667 units.O Process Beta is cheaper than process Alpha at all volumes; there is no break-even point.O It is impossible for one process to have both of its costs lower than those ofanother process.O Process Alpha is more profitable than process Beta and should be selected.

Answer:- False Explanation:- Process beta should be selected for the very large production volume…

A furniture manufacturing company has two main processes. Process Alpha that makes dinning table and chair with the variable costs of $2.40 per unit. Process Beta that makes bedroom furniture with the variable costs of $2.25 per unit. The fixed cost of process Alpha and Beta is $10,000 and $9,000 respectively. Which of the following statements is true? O Process Alpha should be selected for very large production volumes. The break-even point is approximately 6667 units. O Process Beta is cheaper than process Alpha at all volumes; there is no break- even point. It is impossible for one process to have both of its costs lower than those of another process. O Process Alpha is more profitable than process Beta and should be selected.

A furniture manufacturing company has two main processes. Process Alpha that makes dinning table and chair with the variable costs of $2.40 per unit. Process Beta that makes bedroom furniture with the variable costs of $2.25 per unit. The fixed cost of process Alpha and Beta is $10,000 and $9,000 respectively. Which of the following statements is true? O Process Alpha should be selected for very large production volumes. The break-even point is approximately 6667 units. O Process Beta is cheaper than process Alpha at all volumes; there is no break- even point. It is impossible for one process to have both of its costs lower than those of another process. O Process Alpha is more profitable than process Beta and should be selected.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 7PA: Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model...

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