Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Nagle Electric, Inc., of Lincoln, Nebraska, must replace a robotic Mig welder and is evaluating two alternatives. Machine A has a fixed cost for
Nagle Electric, Inc., of Lincoln, Nebraska, must replace a robotic Mig welder and is evaluating two alternatives. Machine A has a fixed cost for the first year of $80,000 and a variable cost of $20, with a capacity of 13,000 units per year. Machine B is slower, with a speed of one-half of A's, but the fixed cost is only $59,000. The variable cost will be higher, at $24 per unit. Each unit is expected to sell for $29. a) What is the crossover point (point of indifference) for the two machines? The crossover point for the two machines is units. (Round your response to the nearest whole number.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started