Question: Tom Johnson Manufacturing intends to increase capacity through the addition of new equipment Two vendors have presented proposals. The fixed costs for proposal A are

Tom Johnson Manufacturing intends to increase capacity through the addition of new equipment Two vendors have presented proposals. The fixed costs for proposal A are $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 a. Given the data, at what volume (units) of output would the two alternatives yield the same profit (loss)? 10000 b. If the expected volume is 8,500 units, which alternative should be chosen? Select) c. If the expected volume is 15,000 units, which alternative should be chosen? Select)

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