### For what range of outputs is each process appropriate

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A product is currently made in a process-focused shop, where fixed costs are \$9000 per year and variable cost is \$50 per unit. The firm is considering a fundamental shift in process, to repetitive manufacture. The new process would have fixed costs of \$90,000, and variable costs of \$5. What is the crossover point for these processes? For what range of outputs is each process appropriate?

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