Wolfgang Kersten Mfg. intends to increase capacity through the addition of new equipment. Two vendors have presented
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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.
a) What is the break-even point in units for proposal X?
b) What is the break-even point in units for proposal Y?
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Operations Management Sustainability And Supply Chain Management
ISBN: 9780137476442
14th Edition
Authors: Jay Heizer, Barry Render, Chuck Munson
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