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Problem 3 XYZ international is planning to increase its capacity to overcome its bottlenecks in its production line. The firm plans to do this by

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Problem 3 XYZ international is planning to increase its capacity to overcome its bottlenecks in its production line. The firm plans to do this by adding new machine. The company is revieing the proposals for this new machine from two vendors. The cost data from the two machines is as follows: Vendor Fixed Cost Variable Cost A $100,000 $12 per unit B $140,000 $9 per unit The revenue that will be generated from the sales of each product produced by the machines is $28 per unit a. Determine each machine's break-even point. b. For what volume range is each machine superior? c. If expected annual demand for the product is 15,000 units, which machine is best

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