Markland Manufacturing intends to increase capac-

ity by overcoming a bottleneck operation by adding new equip-

ment. Two vendors have presented proposals. The fixed costs for

proposal A are $50,000, and for proposal B, $70,000. The variable

cost for A is $12.00, and for B, $10.00. The revenue generated by

each unit is $20.00.

at what volume

(units) of output would the two alternatives yield the same

profit? PX