Question
A manufacturing company intends to increase its capacity by overcoming a bottleneck operation through the addition of a new equipment. Two vendors have presented proposals.
A manufacturing company intends to increase its capacity by overcoming a bottleneck operation through the addition of a new equipment. Two vendors have presented proposals. The fixed costs are 10 thousand dollars for proposal A and 35 thousand dollars for proposal B. The variable costs per unit are $20 for A and $10 for B. The revenue generated by each unit of product sold is $50. The break-even point for proposal A is ---- units. The break-even point for proposal B is ---- units. If the expected sales volume is 1 thousand units, the company should choose proposal ----. Choose the one that makes the incomplete statements, indicated by ----, true. (Do not round your intermediate calculations. Round your final answer to the nearest whole number. orsdemir, Copyrighted material)
(333,437,B)
(499,875,A)
(333,1312,B)
(333,875,A)
None of these
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