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3. Proposals from two suppliers to a manufacturing plant are as below (table) Supplier I Supplier II Fixed cost = 50,000 Fixed cost = 70.000
3. Proposals from two suppliers to a manufacturing plant are as below (table) Supplier I Supplier II Fixed cost = 50,000 Fixed cost = 70.000 Variable cost/unit = 12.00 Variable cost/unit = 10.00 Price = 20.00 Price = 20.00 i. Determine the break-even points for each supplier (BEQ and BEC). ii. If both suppliers are going to make the same amount of profit, what would be amount of supply. iii. Calculate the amount of profit, if Q = 8,500 units. Which proposal should be chosen? iv. What-if Q=15,000 units. v. If the variable costs are reverse and all other data remain same, what would be the decision in terms of BEQ and BEC
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