Overcoming a bottleneck operation by adding

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Markland Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have presented proposals. The fixed costs are $55,000 for proposal A and $70,000 for proposal B. The variable cost is $13.00 for A and $10.00 for B. The revenue generated by each unit is $22.00.

Vendor A and Vendor B have the same cost when the output volume? = __units ?(round your response to the nearest whole? number).

Reference no: EM132817817

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