Operations Management

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en garde, Inc. Is a new company and must decide which of three processes to use in producing their product. The product is expected to sell six dollars per unit and the cost associated with each process appear below:

Process A- Fixed cost ($10,000)- variable cost ($2)

Process B- Fixed cost ($5,000)- variable costs ($4)

Process C- Fixed cost ($3,000)- variable costs ($6)

Question: If demand is 800 units, what would you recommend?

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