Question: PLEASE SHOW WORK A small firm intends to increase the capacity of a bottleneck operation by adding a new machine Two attentives. A und B
PLEASE SHOW WORK
A small firm intends to increase the capacity of a bottleneck operation by adding a new machine Two attentives. A und B have been Identified, and the associated costs and revenues have been estimated. Annun fixed costs would be SO DOO for And $30,000 for : variable costs per unit would be $10 for A and $11 for B; and revenue per unit would be $15. a. Determine each alternative's break-even point in units. QBEPA QBEP,B units units b. At what volume of output would the two alternatives yield the same profit? units If expected annual demand is 12,000 units, which alternative would yield the higher profit? Higher profit
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