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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
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 $ and a variable cost of $ with a capacity of units per year. Machine B is slower, with a speed of onehalf of As but the fixed cost is only $ The variable cost will be higher, at $ per unit. Each unit is expected to sell for $
a What is the crossover pointpoint of indifference for the two machines?
The crossover point for the two machines is
enter your response here units. Round your response to the nearest whole number.
Part
b What is the range of units for which machine A is preferable?
Machine A is preferable at a level of production
enter your response here units. Enter your response as a whole number.
Part
c What is the range of units for which machine B is preferable?
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