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Fred's Fabrication, Inc. wants to increase capacity by adding a new machine. The firm is
considering proposals from vendor A and vendor B. The fixed costs for machine A are $90,000 and
for machine B, $70,000. The variable cost for A is $9.00 per unit and for B, $14.00. The revenue
generated by the units processed on these machines is $20 per unit. The crossover between
machine A and machine B is

a. 4,000 units, with A more profitable at low volumes
b. 4,000 dollars, with A more profitable at low volumes
c. 4,000 units, with B more profitable at low volumes
d. 4,000 dollars, with B more profitable at low volumes
e. none of the above

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Which of the following statement is true regarding fixed and variable cost?

The correct answer is option B. Fixed costs are constant in total, and variable costs are constant per unit.

Which of the following statements is true about fixed and variable costs quizlet?

Which of the following statements is TRUE regarding fixed and variable costs? Fixed costs are fixed in total, and variable costs are fixed per unit.

Which of the following statements is true variable and fixed?

Both variable and fixed cost change with the change in the level of production.

Which of the following statements is true when referring to fixed costs quizlet?

Which of the following statements is true when referring to fixed costs? Discretionary fixed costs can often be reduced to zero for short periods of time without seriously impairing the long-run goals of the company.