Manufacturas Pole Inc. tries to increase its capacity with the installation of new equipment to eliminate bottlenecks in its operation. Two vendors have submitted proposals to you. Proposal A and Proposal B. The total values of each proposal, the variable costs, and the income or revenue of both proposals are indicated in the following table:

Proposal	Fix Cost	Variable Cost	Unit
A	50,000	12	20
A	70,000	10	20

Required

a) Determine the break-even-point (BEP) for Proposition A, both in units and in dollars.
b) Determine the break-even-point (BEP) for Proposition B, both in units and in dollars.

Answer rating: 100% (QA)

Breakeven point BEP occurs when the total cost Total revenue ie Fix... View the full answer