Question
Weiss 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
Weiss 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 $75,000 for proposal B. In addition to the proposed fixed costs from the twovendors, Weiss's management anticipates that they will have to spend
$12,000 for installations to be completed. The variable cost is$12.00 for A and $12.00 for B. The revenue generated by each unit is $ 20.00
a) Thebreak-even point in dollars for the proposal by Vendor A= ______$ (round your response to the nearest wholenumber).
b) Thebreak-even point in dollars for the proposal by Vendor B= ______$ (round your response to the nearest wholenumber).
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