Problembismarck manufacturing intends to increase capacity, Ask an Expert

Programming

Problem

Bismarck Manufacturing intends to increase capacity through the addition of new equipment. Two vendors have presented proposals. The fixed cost for proposal A is $65,000, and for proposal B, $34,000. The variable cost for A is $10, and for B, $14. The revenue generated by each unit is $18.

(a) What is the break-even point for each proposal?

(b) If the expected volume is 8,300 units, which alternative should be chosen?

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DBMS, Programming

Category:- DBMS
Reference No.:- M92763704

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