Question: Markland Manufacturing intends to increase capacity LOADING... by overcoming a bottleneck LOADING... operation by adding new equipment. Two vendors have presented proposals. The fixed costs

Markland Manufacturing intends to increase

capacity

LOADING...

by overcoming a

bottleneck

LOADING...

operation by adding new equipment. Two vendors have presented proposals. The fixed costs are

$60,000

for proposal A and

$80,000

for proposal B. In addition to the proposed fixed costs from the two vendors, Markland's management anticipates that they will have to spend

$8,000

for installations to be completed. The variable cost is

$14.00

for A and

$12.00

for B. The revenue generated by each unit is

$22.00.

a) The break-even point in dollars for the proposal by Vendor A =

$

(Round your response to the nearest whole number.)

b) The break-even point in dollars for the proposal by Vendor B =

$

(Round your response to the nearest whole number.)

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