Question: Explain how to do this problem 23. DuLarge Fabricators wants to increase capacity by adding a new machine. They are considering proposals from two vendors,

 Explain how to do this problem 23. DuLarge Fabricators wants to

Explain how to do this problem

23. DuLarge Fabricators wants to increase capacity by adding a new machine. They are considering proposals from two vendors, A and B. The fixed costs associated with Machine A are $90,000 and for Machine B, $75,000. The variable cost for Machine A is $15 per unit of product and for B,$18. The revenue is $22 per unit of product. It is estimated that 5,000 units will be sold. Which machine (if any) should be purchased? A) Machine A B) Machine B C) Either Machine A or Machine B X/OQ QTP =181590,00078,000=5,000 enits D) Neither Machine A nor Machine B BE QTY FOR A=221590,000=12,857 units. NEITHER

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