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Sroufe Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have presented proposals. The fixed costs are $60,000
Sroufe Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have presented proposals. The fixed costs are $60,000 for proposal A and $70,000 for proposal B. The variable cost is $13.00 for A and $9.00 for B. The revenue generated by each unit is $24.00. a) The break-even point in units for the proposal by Vendor A = units (round your response to the nearest whole number)
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