Question list

$\frac{x}{\frac{?}{?}}$ Question $1$

Question $2$

b$)$ What is the range of units for which machine $A$ is preferable?

Machine $A$ is preferable at a level of production

units. $($Enter your response as a whole number.$)$

Question $3$

Question $4$

Guadalupe Electric, Inc. must replace a robotic Mig welder and is evaluating two alternatives. Machine A has a fixed cost for the first year of

$$87,000$ and a variable cost of $$17,$ with a capacity of $22,000$ units per year. Machine B is slower, with a speed of one$-$half of A$\text{'}$s$,$ but the fixed cost

is only $$55,000.$ The variable cost will be higher, at $$21$ per unit. Each unit is expected to sell for $$31.$

a$)$ What is the crossover point $($point of indifference$)$ for the two machines?

The crossover point for the two machines is $8000$ units. $($Round your response to the nearest whole number.$)$

b$)$ What is the range of units for which machine $A$ is preferable?

your response as a whole number.$)$