Exercise: 1. 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) If the expected volume is 28,500 units, which proposal should be considered? b) If the expected volume is 15,000 units, which proposal should be considered? 2. Please identify the daily break-even sales for the following scenario. Fixed cost is 3,000 per month. ITEM ANNUAL FORECASTED SALES UNITS PRICE COST Sandwich 9,000 5.00 3.00 Drink 9,000 1.50 0.50 Baked potato 7,000 2.00 1.00 a) What is the dollar efficiency for each product? b) What is the break-even sales (in dollar)? c) What is the break-even sales (dollar per day)? (Assuming 312 business days a year)