Tom johnson manufacturing intends to increase capacity, Ask an Expert

Management Studies

Tom Johnson Manufacturing intends to increase capacity through the addition of 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) If the expected volume is? 8,500 units, _______(proposal A or proposal B) with a total profit = $______ should be chosen ?(enter your response as a whole? number).

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92288255

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