Question: 18) DuMore Fabricators wants to increase capacity by adding a new machine. The firm is considering proposals from vendor A and vendor B. The fixed
18) DuMore Fabricators wants to increase capacity by adding a new machine. The firm is considering proposals from vendor A and vendor B. The fixed costs for Machine A are $110,000 and for machine B are $80,000. The variable cost for A is $15.00 per unit and for B, $18.00 per unit. The indifference point between Machine A and Machine B is:
Group of answer choices
A) 6,667 units
B) 7,333 units for A and 6,667 units for B
C) 10000 units
D) $10000
E) $6,667
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