eiss Manufacturing intends to increase capacity by overcoming a bottleneck opera

Question

eiss Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two endors have presented proposals. The fixed costs are $50,000 for proposal A and $75,000 for proposal B. In addition to the proposed fixed costs from the two vendors, Weiss's management anticipates that they will have to spend $10,000 for installations to be completed. The variable cost is $14.00 for A and $10.00 for B. The revenue generated by each unit is $22.00 a) The break-even point in dollars for the proposal by Vendor A -s (round your response to the nearest whole number) b) The break-even point in dollars for the proposal by Vendor B- (round your response to the nearest whole number) Enter your answer in each of the answer boxes

Explanation / Answer

Break even point is where the Total cost incurred becomes equal to total Revenue.

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