What is the break even point for each proposal

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Reference no: EM131287966

Passaic manufacturing company intends to increase capcity through the addition of new equiment. two vendors have presented proposals the fixed cost for proposal a is $65,000 and proposal b $34,000 variable cost per unit item produced for a $10 and for b $ 14 the renvenue generated by each unit item is $ 18

a. What is the break even point for each proposal ?

b. If the expected volume is 8,300 units , which is alternative should be chosen?

Reference no: EM131287966

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