The following table demonstrates the critical factors in, Ask an Expert

Management Studies

The following table demonstrates the critical factors in company's decision on choosing the new piece of equipment. Compute the breakeven volume and utilization for each option and then find out the range of volumes for which each option is best decision.

	Machine A	Machine B
Fixed Costs/Month	$ 20,000.00	$ 10,000.00
Variable Cost/Unit	$ 3.90	$ 4.25
Revenue/Unit	$ 21.00	$ 19.00
Capacity/Month	2500	1000
Breakeven Volume
Breakeven Utilization
Best Option Volume Range:
min
max

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Project Management, Management Studies

Category:- Project Management
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