Question: Please help with parts c. and d.: Stapleton Manufacturing intends to increase capacity through the addition of new equipment. Two vendors have presented proposals. The

Please help with parts c. and d.:

Stapleton Manufacturing intends to increase capacity through the addition of new equipment. Two vendors have presented proposals. The fixed cost for proposal A is $65,000, and for proposal B, $34,000. The variable cost for A is $10, and for B, $14. The revenue generated by each unit is $18.

  1. What is the crossover point in units for the two options? 7750 Units
  2. At an expected volume of 8,300 units, which alterative should be chosen? If the expected volume is 8300 units, proposal A yields a profit of $1400 and proposal B yields a loss of $800.Hence,proposal A should be chosen.
  3. What is the range of units for which proposal A is preferable?
  4. What is the range of units for which proposal B is preferable?

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