Tom Johnson Manufacturing intends to increase capacity through the addition of new equipment. Two vendors have presented proposals. The fixed costs for proposal A are $50,000, and for proposal B, $70,000. The variable cost for A is $12.00, and for B, $10.00. The revenue generated by each unit is $20.00.

a. Given the data, at what volume (units) of output would the two alternatives yield

the same profit (loss)? [ Select ]

b. If the expected volume is 8,500 units, which alternative should be chosen? [ Select ]

c. If the expected volume is 15,000 units, which alternative should be chosen? [ Select ]