Question: Given the data in Problem S7.28, at what volume (units) of output would the two alternatives yield the same profit (loss)? Data from problem 28
Given the data in Problem S7.28, at what volume (units) of output would the two alternatives yield the same profit (loss)?
Data from problem 28
Wolfgang Kersten Mfg. intends to increase capacity through the addition of new equipment. Two vendors have presented proposals. The fixed costs for proposal X are $150,000, and for proposal Y, $170,000. The variable cost for X is $120.00, and for Y, $100.00. The revenue generated by each unit is $200.00.
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