Question: Problem 1 Markland Manufacturing intends to increase capacity by overcoming a bottleneck operation through the addition of new equipment Two vendors have presented proposal. The

Problem 1 Markland Manufacturing intends to

Problem 1 Markland Manufacturing intends to increase capacity by overcoming a bottleneck operation through the addition of new equipment Two vendors have presented proposal. The fixed cost for proposal A is $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 How many units must be sold to break even for each proposal? What level of revenue is necessary to break even for each proposal? What is the best proposal if marketing is estimating there is a 15% chance sales will be 5.000 units, a 65% chance sales will be 7.000 units, and a 20% chance sales will be 8,000 units? What is the expected profit for each of the proposals, based on marketing's sales estimates

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