Chapter 5 Quiz 2 8 00:49:46 Quantitative break even point of A Quantitative break even point of B Saved A small company intends to increase the capacity of its bottleneck operation by adding a new machine. Two alternatives, A and B, have been identified, and the associated costs and revenues have been estimated. Annual fixed costs would be $47,000 for A and $41,000 for B; variable costs per unit would be $10 for A and $13 for B; and revenue per unit would be $15 for A and $17 for B. a. Determine each alternative's break-even point. b. At what quantity would the two alternatives yield the same profit? Quantity units per yea B OA units per year units per year c. If expected annual demand is 16,000 units, which alternative would yield higher profit? Help Save & Exit

A small company intends to increase the capacity of its bottleneck operation by adding a new machine. Two alteinatives. A and A have been identified, and the associated costs and revenues have been estimated. Annual fixed costs would be 347,000 for A and $41,000 for B; vanable costs per unit would be $10 for A and $13 for B, and revenue per unit would be $15 for A and $17 for B a. Determine each alternative's break-even poin. b. At what quantity would the two alternatives yield the same profit? Quanty units per year c. If expected annual demand is 16,000 units, which alternative would yield higher protit? B A