Question: Hello someone answer this question but the calculations provided do not add up to the answer given for all of them. Please assist me on
Hello someone answer this question but the calculations provided do not add up to the answer given for all of them. Please assist me on this.


A company intends to increase capacity through the addition of new equipment. Two vendors have presented proposals. The FC for proposal X are $150k and for proposal Y$170k. The variable cost per unit for X is $120k and for Y$100k. The revenue generated by each unit is $200k. a. What's the break-even point in units for each proposal? b. What's the break-even point in dollars for each proposal? ( provide explanation on how you got your answers) c. Make the proper conclusion on which proposal to choose and state your assumptions. a. The break even point in units for proposal X is 1,250 units and for proposal Y is 1,700 units. To calculate the break even point in units for proposal X, we can use the formula: Breakeven in Units = Fixed Cost/ (Price - Variable Cost). Therefore, Breakeven in Units for Proposal X=150,000/(200,000120,000)=1,250 units. To calculate the break even point in units for proposal Y, we can use the formula: Breakeven in Units = Fixed Cost/ (Price - Variable Cost). Therefore, Breakeven in Units for Proposal Y=170,000/(200,000100,000)=1,700 units. b. The break even point in dollars for proposal X is $375,000 and for proposal Y is $425,000. To calculate the break even point in dollars for proposal X, we can use the formula: Breakeven in Dollars = Fixed Cost/ (Price Variable Cost) Price. Therefore, Breakeven in Dollars for Proposal X=150,000/(200,000120,000)200,000=375,000. To calculate the break even point in dollars for proposal Y, we can use the formula: Breakeven in Dollars = Fixed Cost / (Price Variable Cost) x Price. Therefore, Breakeven in Dollars for Proposal Y =170,000/(200,000100,000)200,000=425,000
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