Question: Power-On Production intends to increase capacity by adding a new milling machine. Two equipment suppliers have presented proposals. The fixed costs for proposal A are

Power-On Production intends to increase capacity by adding a new milling machine. Two equipment suppliers have presented proposals. The fixed costs for proposal A are $50,000, and for proposal B, $70,000. The variable cost for A is $12.00, and for B, $10.00. The revenue generated by each unit is $20.00.

A. What is the break-even point in units for proposal A? (2 Points)

B. What is the break-even point in units for proposal B? (2 points)

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