(Answered) Joes machine shop has identified the grinding station as

Accounting

Joe's Machine Shop has identified the grinding station as its key bottleneck and has identified two options for expansion. The Grinder 1000 has fixed costs of $20,000 and $10 per unit. The Grinder 2000 has fixed costs of $40,000 and $8 per unit variable costs. Revenue per unit is projected to be $16.

a. Determine the break-even point for each alternative.

b. At what volume of output would the two alternatives yield the same profit?

c. If demand is 13,000 units, which option yields a higher profit? How much?

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