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Cortez Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have presented proposals. The fixed costs are
Cortez Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have presented proposals. The fixed costs are $50,000 for proposal A and $80,000 for proposal B. The variable cost is $14.00 for A and $10.00 for B. The revenue generated by each unit is $22.00. a) The break-even point in units for the proposal by Vendor A = units (round your response to the nearest whole number). units (round your response to the nearest whole number). b) The break-even point in units for the proposal by Vendor B =
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