Question: Problem 5-4 A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Two alternatives, A and B, have

Problem 5-4 A small firm intends to increase the

Problem 5-4 A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Two alternatives, A and B, have been identified, and the associated costs and revenues have been estimated. Annual fixed costs would be $44,000 for A and $20,000 for B; variable costs per unit would be $10 for A and $11 for B; and revenue per unit would be $19. a. Determine each alternative's break-even point in units. (Round your answer to the nearest whole amount.) , units units b. At what volume of output would the two alternatives yield the same profit (or loss)? (Round your answer to the nearest whole amount.) [ units c. If expected annual demand is 18,000 units, which alternative would yield the higher profit (or the lower loss)? Higher profit ((Click to select) - )

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