1. Process A has fixed costs of $1000 and variable costs of $5 per unit. Process B has fixed costs of $500 and variable costs of $15 per unit. What is the crossover point between process A and process B?
1. 50 units
2. 200 units
3. $2,500
4. $5,000
5. $9,500
2. Sanford Corporation bought new technological systems to inspect the quality of products as they come off the production line. The expense of operating these systems would be an example of which of the following types of quality-related costs? (choose one and explain)
1. Internal failure costs
2. Appraisal costs
3. External failure costs
4. Prevention costs
5. Kanban costs