Bottleneck operation by adding new equipment

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Reference no: EM131591209

Markland Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have presented proposals. The fixed costs are $ 60 comma 000$60,000 for proposal A and $ 70 comma 000$70,000 for proposal B. The variable cost is $ 13.00$13.00 for A and $ 10.00$10.00 for B. The revenue generated by each unit is $ 24.00$24.00.

Reference no: EM131591209

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