S7.17 Sroufe Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two
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• S7.17 Sroufe Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding 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) What is the break-even point in units for proposal A?
b) What is the break-even point in units for proposal B?
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13th Edition
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