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A small rm intends to increase the capacity of a hottlen eck operation by adding a nevur machine. Two alternatives. A S; B, have been

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A small rm intends to increase the capacity of a hottlen eck operation by adding a nevur machine. Two alternatives. A S; B, have been identied. and the associated costs and revenues have been estimated. Annual xed costs would be $50,000 for A and $45,000 for B; variable costs per unit would be $20 for A and $25 for B: and revenue per unit would be $30. If expected annual demand is 20,000 units, which alternative would vield the higher prot? A. Alternative B because it yields $55,000 B. Alternative A because it vieids 513,000 C. Alternative B because it yields $13,000 D. Alternative A because it yields $150,000

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