Question: I need solutions from a to e. Thanks! Markland Manufacturing intends to increase its manufacturing capacity of a component by ac- quiring new equipment for

I need solutions from a to e. Thanks!
Markland Manufacturing intends to increase its manufacturing capacity of a component by ac- quiring new equipment for its bottleneck operation. The company is considering two options designated A and B. Acquiring option A will cost $500,000 while option B will cost $750,000. Each option will produce the same quality but its operating costs are different. The operating cost of option A is $30.00/unit, and for B, $25.00/unit. The company has calculated that the value of the component is $50.00/unit. a. Plot, on the same graph, the lines describing the potential profit from each option. b. What is the break-even point in units for proposal A? c. What is the break-even point in units for proposal B? d. Which conditions are necessary for proposal A to be the better option? e. Which conditions are necessary for proposal B to be the better option? f. The demand forecast indicates that Markland will need to produce at least 50,000 compo- nents during the lifetime of the production line. Which option (A or B) would you choose given this informationStep by Step Solution
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