Question: Explain why B is more profitable at low volumes? 27. DuLarge Fabricators wants to increase capacity by adding a new machine. They are considering proposals

Explain why B is more profitable at low volumes? 27. DuLarge Fabricators

Explain why B is more profitable at low volumes?

27. 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, $70,000. The variable cost for Machine A is $6 per unit of product and for B, $8. The revenue is $22 per unit of product. The crossover point between Machine A and Machine B is A) 10,000 units, with A more profitable at low volumes B) 10,000 dollars with A more profitable at low volumes C) 0,000 units with B more profitable at lnw volumes 10QT4=8690,00070,000 D. Dro uvits

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