1.    Suppose a company has two processes to choose from. Process A will incur a total fixed cost of $1 million a year and a per-unit variable cost of $4. Process B will incur a total fixed cost of $1.5 million a year and a per-unit variable cost of $3.  

            (a)  What is the cross-over point?  

            (b) What is the volume range over which Process A will incur a lower total cost? And why?