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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 $20.00 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? (Hint: Find BEB BEA)

Machine A

Machine B

Price per pair (P)

$20.00

$20.00

Fixed costs (F)

$25,000

$100,000

Variable cost/unit (V)

$7.00

$4.00

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