Question: please help A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Two alternatives, A and B, have
A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Two alternatives, A and B, have been identifled, and the associated costs and revenues have been estimated. Annual flxed costs would be $36,000 for A and $31,000 for B; varlable costs per unit would be $7 for A and $11 for B; and revenue per unit would be $18. a. Determine each alternative's break-even point in units. (Round your answer to the nearest whole amount.) b. At what volume of output would the two alternatives yleld the same profit (or loss)? (Round your answer to the nearest whole amount.) c. If expected annual demand is 15,000 units, which alternative would yield the higher profit (or the lower loss)
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