Q$2.$ Tom Johnson Manufacturing intends to increase the capacity through the addition of new equipment. Two vendors have presented proposals. The fixed cost for proposal A is $$56,000$ and for proposal B is $$73,040.$ The variable cost for B is $$12$ and A$,$ $$13.$ The selling price of a product produced from proposal A is $$21$ and from proposal B is $$23.$

a$)$ What is the breakeven point in units and in dollars for proposal A$?$

b$)$ What is the breakeven point in units and in dollars for proposal B$?$

c$)$ If the expected volume is $6700$ units, which proposal should be chosen?

d$)$ At what level of production, A$,$ and B becomes indifferent $($equal profits or loss too$)?$

$($Hints: only one condition, you can use either Goal seek or solver$)$

e$)$ Find the sales volume of A at which the profit of A is higher than B by $3040$ and the volume of A is higher than B by $2000.$

$($Hints: two or more conditions, you should use solver. Activate solver in excel: File$>$Options$>$Add$-$ins$>$ Manage$>$Check Excel$-$Add$-$ins in the box$>$ Click $$Go$>$ Check the box of Solver Add$-$ins$>$ Click OK$.$ Now you can find the $$solver$$ under the Data tab$)$

f$)$ If you are given an option to select only one proposal, which proposal will you choose? Why?