Overcoming a bottleneck operation by adding new equipment

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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 $75,000 for proposal B. The variable cost is $13.00 for A and $11.00 for B. The revenue generated by each unit is $22.00.

a) The? break-even point in units for the proposal by Vendor A? = units (round to nearest whole number)

b) The? break-even point in units for the proposal by Vendor B? = units (round to nearest whole number)

Reference no: EM132817832

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