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pic two is the (a) answer, not sure if it is correct? plz correct (a) and do (b) use excel or write down clearly. Thanks
pic two is the (a) answer, not sure if it is correct? plz correct (a) and do (b) use excel or write down clearly. Thanks
Bismarck Manufacturing intends to increase capacity through the addition of new equipment. Two vendors have presented proposals. The fixed cost for proposal A is $65,000, and for proposal B, $34,000. The variable cost for A is $10, and for B, $14. The revenue generated by each unit is $18. (a) What is the break-even point for each proposal? (b) If the expected volume is 8,300 units, which alternative should be chosen? EL TEUTON DULU B22 B C D A 1 Bismarch Manufacturing 2 3 Known Parameters 4 Fixed cost 5 Variables cost per unit 6 Revenue per unit $65,000.00 $ 10.00 $ 18.00 8 Variables 9 Number of units, X $ 8,125.00 (6500000/18-10) 10 11 Result 12 Total revenue 13 Fixed cost 14 Total variable cost 15 Total cost 16 Profit 17 18 $ 65,000.00 $ 81,250.00 146,250.00 (146,250.00) $ $ 19 20 21 22 23 24
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