CA is a manufacturer of solar panels The company is currentl

C&A; is a manufacturer of solar panels. The company is currently deciding between three new methods for making these panels. The first process is estimated to have a fixed cost of $100,000 and a variable cost of $500 per unit. The second process is estimated to have a fixed cost of $180,000 and a variable cost of $400 per unit. The third process is estimated to have a fixed cost of $500,000 and a variable cost of $200 per unit. Which of the following statements is/are TRUE? Check all that apply. D C&A; should choose process two if demand is between 800 and 1,600. C&A; should choose process one if demand is greater than 800 O C&A; should choose process one if demand is less than 800 D C&A; should choose process three if demand is greater than 1,600. C&A; should choose process three if demand is between 800 and 1,600. C&A; should choose process two if demand is greater than 800.

Solution

Answer) - Option (3). C&A should choose process one if demand is less than 800.