What is the crossover point in units for the two operations

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A manufacturing firm intends to increase capacity through the addition of new equipment. Two vendors have presented proposals. The fixed cost per unit produced for proposal A is $65,000, and for proposal B is $34,000. The variable cost for A is $10 and for B is $14. The revenue generated by each units is $18.

a. What is the crossover point in units for the two operations?

b. At an expected volume of 8,300 units, which alternative should be chosen?

c. At the volume given in (b), what is the expected profit?

Reference no: EM132245578

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