Overcoming bottle neck operation by adding new equipment

Assignment Help Marketing Management

Reference no: EM131767483

Weiss Manufacturing intends to increase capacity by overcoming a bottle neck 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. In addition to the proposed fixed costs from the two vendors, Weiss’s Management anticipates that they will have to spend $8000 for installations to be completed. The variable cost is $12 for A and $12 for B. The revenue generated by each unit is $20.

The break even point in dollars for the proposal by vendor A= $___

The break even point in dollars for the proposal by vendor B=$___

Reference no: EM131767483

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