Reference no: EM132827001

Stapleton Manufacturing intends to increase capacity through the addition of new equipment. Two vendors have presented proposals. The fixed cost for proposal A is ?$52,000?, and for proposal? B, ?$25,000. The variable cost for A is ?$11?, and for? B, ?$15. The revenue generated by each unit is ?$20.

?a) What is the crossover point for the two? options?

The crossover point for the two options is ________ units. ?(Round your response to the nearest whole? number.)

?b) At an expected volume of 9,500 ?units, which alternative should be? chosen?

The profit? (loss) if proposal A is accepted and 9,500 units are produced is ?$________ ?(Round your response to the nearest dollar and include a minus sign if? necessary.)

The profit? (loss) if proposal B is accepted and 9,500 units are produced is ?$_________ ?(Round your response to the nearest dollar and include a minus sign if? necessary.)

_________ should be chosen at an expected volume of 9,500 units.

a) Proposal A

b) Proposal B