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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 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.
b What is the range of units for which machine is preferable?
Machine is preferable at a level of production units. Enter your response as a whole number.
c What is the range of units for which machine is preferable?
Machine is preferable at a level of production units Enter your response as a whole number.
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