What is the crossover point in units for the two options

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Reference no: EM131256130

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

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

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

Reference no: EM131256130

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