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Given the data in Problem S7 17 at what volume units of output would the two alternatives yield the same profit Problem S7.17 Mark land Manufacturing intends to increase capacity by overcoming

Given the data in Problem S7.17, at what volume (units) of output would the two alternatives yield the same profit?

Problem S7.17

Mark land Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have presented proposals. The fixed costs for proposal A are $50,000, and for proposal B, $70,000. The variable cost for A is $12.00, and for B, $10.00. The revenue generated by each unit is $20.00.

a) What is the break-even point in units for proposal A?

b) What is the break-even point in units for proposal B?

Jun 15 2020 View more View Less

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