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Assume that you and your brother plan to open a business that will make and sell a newly designed type of sandal. Two robotic machines
Assume that you and your brother plan to open a business that will make and sell a newly designed type of sandal. Two robotic machines are available to make the sandals, Machine A and Machine B. The price per pair will be $30.00 regardless of which machine is used. The fixed and variable costs associated with the two machines are shown below. What is the difference between the break-even points for Machines A and B? Do not round your intermediate calculations. (Hint: Find BEB - BEA)
a. 2,069
b. 2,759
c. 2,621
d. 2,235
e. 3,035
Price per pair (P) I Fixed costs (F) Variable cost/unit (V) Machine A $30.00 $25,000 Machine B $30.00 $100,000 $7.00 $4.00Step by Step Solution
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