Question: use an excel spread sheet to answer the question below: 1) Bismark Manufacturing intends to increase capacity through the addition of new equipment.Two vendors have
use an excel spread sheet to answer the question below:
1) Bismark Manufacturing intends to increase capacity through the addition of new equipment.Two vendors have presented proposal,The fixed cost for proposal A is $65,000, and for proposal B,$34,000.
The variable cost for A is $10 and for B,$14,the revenue generated
by each unit is $18.
A) what is the break-even point for each proposal?
B) If the expected volume is $8,300 units, which alternative should be chosen?
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