I’m currently working on an assignment for my Operations Management course and need assistance with process selection based on cost

I’m currently working on an assignment for my Operations Management course and need assistance with process selection based on cost analysis.

Scenario:

A company is evaluating two production processes for a new product:

  • Process A: Fixed Costs = $50,000; Variable Cost per Unit = $10
     
  • Process B: Fixed Costs = $25,000; Variable Cost per Unit = $18
     

Tasks:

  1. Determine the break-even point where both processes have equal total costs.
     
  2. Identify which process is more cost-effective at production volumes of 3,000 and 7,000 units.
     
  3. Provide a brief explanation of how the break-even analysis informs the decision-making process in operations management.

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