Question: Machine Fixed Cost (5) Variable Cost/Unit Max Capacity PART 1: Listed at the right are the Fixed and Variable costs and maximum capacity for each

Machine Fixed Cost (5) Variable Cost/Unit Max
Machine Fixed Cost (5) Variable Cost/Unit Max Capacity PART 1: Listed at the right are the Fixed and Variable costs and maximum capacity for each food wrapping machine being considered. (6 pts) 1 Model 740B Model 1000-C Model 1200-D 20,000 15,000 12,000 1.5 2 9,000 15,000 5,000 1. What is the breakeven point for each machine if average revenue per unit is $3.50? (2 points each) BEP7400 = Answer: units BEP1000 - Answer: units BEP1000 = Answer: units 2. Given the BEPs you just calculated and the data in the above chart, which (if any) machine would you select if dally demand was expected to range between 4,000 and 7,000 over the next 3 years? Justify in 1 sentence or less. (4 pts) Machine: Justification

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