What is the break-even point in dollars for proposal

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Reference no: EM133492668

Question: Mark Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have presented proposals. The fixed costs for proposal A are $50 000, and for proposal B, $70 000. The variable cost for A is $12.00, and for B, $10.00. The revenue generated by each unit is $20.00.

What is the break-even point in units for proposal A?
What is the break-even point in units for proposal B?

Using the data in from above:

What is the break-even point in dollars for proposal A if you add $10 000 installation to the fixed cost?
What is the break-even point in dollars for proposal B if you add $10 000 installation to the fixed cost?

Reference no: EM133492668

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