The crossover point is that production quantity where

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crossover point is that production quantity where: variable costs of one process equal the variable costs of another process

crossover point is that production quantity where: variable costs of one process equal the variable costs of another process fixed costs of a process are equal to its variable costs costs equal total revenues for a process costs for one process equal total costs for another process the process no longer loses money

Answer

Answer: (d) Total
costs for one process equal total costs for another process.

Explanation:
Crossover point between two processes is determined using the
breakeven analysis. Suppose there are two processes A and B with a
given fixed cost and variable costs.

Total cost = Fixed cost + (Variable
cost x Number of units)

At the crossover
point
,

Total cost of process A =
Total cost of process B

Let the breakeven quantity be given
by Q. Therefore,

F(A) + [V(A) x Q] = F(B) + [V(B) x
Q]

where,

F(A) = Fixed cost of process A

V(A) = Variable cost of process
A

F(B) = Fixed cost of process B

V(B) = Variable cost of process B

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