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Question - Joe's machine shop has identified the grinding station as its key bottleneck and has identified two options for expansion. The grinder 1000 has fixed costs of $20,000 and $10 per unit variable costs. The Grinder 2000 has fixed costs of $40,000 and $8 per unit variable costs. Revenue per unit is projected to be $16.
a. Determine the break-even point for each alternative.
b. At what volume of output would the two alternatives yield the same profit?
c. If demand is 13,000 units, which option yields a higher profit? How much?
How would you advise Mel and prepare a schedule to show the differential costs.
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Question - What is the primary difference between a static budget and a flexible budget
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