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Jack and Michael brothers are partners of a company that produces spare parts.A and B to date bthe company that manufactures its parts, introducing a
Jack and Michael brothers are partners of a company that produces spare parts.A and B to date bthe company that manufactures its parts, introducing a new part such as C or Dinto the production line and thereby they aim to increase sales revenue and profitability. The company's fixed costs are 120,000$ Information about the current situation and C and D spare parts to be added to the production line are as follows: Www Wy [Q production quantity, p sales price, TR sales revenue, TRI / ETR sales share, AVC average express variable cost and TVC total variable cost. I SPARE PART A B Q 1.500 4.000 TR TR / ETR AVC AVC/PTVC / ETR TVC 120.000 0,375 30 0,375 0,141 45.000 200.000 0,625 18 0,360 0,225 72.000 320.000 1,00 0,366 117.000 50 (BEP); 189.274 TOTAL COST $83.000 SPARE PART D Q 1.000 1.500 TR 25 25.000 20 30.000 AVC 12 6 TVC 12.000 9.000 One of the brothers is arguing about getting Jack C and Michael D on the production line they cannot decide. According to this, a) In the event that C spare parts are taken into the production line, the Company's Break-Even Point of Sales Calculate (BEP) and Total Profit. b) In the event that D spare parts are put on the production line, the Company's Break-Even Point of Sales Calculate (BEP) and Total Profit. c) Which spare parts do you think is more suitable to take on the production line? Your decision on this matter explain briefly with the reason
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