XYZ International is planning to increase its capacity to overcome the bottlenecks in its production line. The firm plans to do this by the addition of a new machine. The company received proposals for this new equipment from two vendors. The cost revenue data for the two machines proposed by the vendors is as follows:

The revenue that will be generated from the sale of each product produced by the machines is $25 per unit.

1. What is the breakeven volume for each machine?

2. For what volume range is each machine superior?

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Fixed Costs Variable Costs (in U.S. dollars) (in U.S. dollars) Vendor 10 per unit 80,000 8 per unit 100,000