Question: Listed below are the Fixed and Variable costs and maximum daily capacity for each machine being considered Machine Fixed Cost Variable Cost/Unit Max Capacity/Day Model

Listed below are the Fixed and Variable costs and
Listed below are the Fixed and Variable costs and
Listed below are the Fixed and Variable costs and maximum daily capacity for each machine being considered Machine Fixed Cost Variable Cost/Unit Max Capacity/Day Model 880-A 15,000 1.50 2,500 Model 7408 13,000 1.90 1,500 Model 1000-C 10,000 2.20 3,000 Model 1200-D 19,000 1.10 8,000 1. What is the breakeven point for each machine if revenue per unit is $8.50? (2 points each) Answer: units BEP Answer: units BEP1800 cm Answer: units - BEP 100 % Answer: units BEP1200-0 = Answer: units 2. Given the BEPs you just calculated and the data in the above chart, which (if any) machine would you select if daily demand was expected to range between 1,800 and 2,000 for the next 5 years? Briefly explain why you recommend this machine vs. the others? Machine: Rationale

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