Homework

Question $5,$ Problem ST$\mathrm{.}11$

Part $1$ of $2$

Points: $0$ of $1$

Sroufe Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have presented proposals. The fixed costs are $$50,000$ for proposal A and $$70,000$ for proposal B The variable cost is $$13\mathrm{.}00$ for A and $$10\mathrm{.}00$ for $B.$ The revenue generated by each unit is $$22\mathrm{.}00.$

a$)$ The break$-$even point in units for the proposal by Vendor $A=$ units $($round your response to the nearest whole number$).$