Question
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.) Machine A Machine B Price per pair (P) $30.00 $30.00 Fixed costs (F) $25,000 $100,000 Variable cost/unit (V) $7.00 $4.00 a. 3,049 b. 2,759 c. 2,266 d. 2,778 e. 2,500
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