Cost data are given below. For what levels of demand should each process be chosen? 1 answer below »

Soft Key is trying to determine how best to produce its newest product, DVORK keyboards. The keyboards could be produced in-house using either Process A or Process B, or purchased from a supplier. Cost data are given below. For what levels of demand should each process be chosen?

Fixed Cost

Variable Cost

Process A

$ 8,000

$10

Process B

$20,000

$ 4

Supplier

$0

$20