TYU is choosing between two alternative processes. Process A has a fixed costs of P150,000 and a variable cost of P15 per unit while Process B has a fixed costs of P300,000 and a variable cost of P10 per unit. What is the level of production in units that would make TYU to be indifferent between the two processes?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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TYU is choosing between two alternative processes. Process A has a fixed costs of P150,000 and a variable cost of P15 per unit while Process B has a fixed costs of P300,000 and a variable cost of P10 per unit. What is the level of production in units that would make TYU to be indifferent between the two processes?

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