Question: SECTION B - (25) Marks) - Please answer all questions and show all working Quality Cement Ltd. intends to increase capacity by overcoming a quality

SECTION B - (25) Marks) - Please answer all

SECTION B - (25) Marks) - Please answer all questions and show all working Quality Cement Ltd. intends to increase capacity by overcoming a quality issue through the addition of new equipment. Two vendors have presented proposals. The fixed cost for proposal A is $50,000 and for proposal B $70,000. The variable cost for proposal A is $12 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 (5 Marks] b) What is the break-even point in units for proposal B [5 Marks] c) What is the break-even point in dollars for Proposal A 15 Marks] What is the break-even point in dollars for proposal B [5 Marks] Which proposal will you choose and why [5 Marks]

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