Cortez Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment.Two vendors have presented proposals. The fixed costs are $50,000 for proposal A and $80,000 for proposal B. Inaddition to the proposed fixed costs from the two vendors, management at Cortez anticipates that they will have tospend $8,000 for installations to be completed. The variable cost is $13.00 for A and $11.00 for B. The revenuegenerated by each unit is $22.00.a) The break-even point in dollars for the proposal by Vendor A = $whole number).b) The break-even point in dollars for the proposal by Vendor B = $whole number).(round your response to the nearest(round your response to the nearest

Step 1: Calculate Total Fixed CostsProposal A: $50,000 (fixed cost) + $8,000 (installation) =…

Answered: Cortez Manufacturing intends to…

Algebra for College Students

10th Edition

ISBN:9781285195780

Author:Jerome E. Kaufmann, Karen L. Schwitters

Publisher:Jerome E. Kaufmann, Karen L. Schwitters

Chapter12: Algebra Of Matrices

Section12.CR: Review Problem Set

Problem 37CR

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Cortez Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment.
Two vendors have presented proposals. The fixed costs are $50,000 for proposal A and $80,000 for proposal B. In
addition to the proposed fixed costs from the two vendors, management at Cortez anticipates that they will have to
spend $8,000 for installations to be completed. The variable cost is $13.00 for A and $11.00 for B. The revenue
generated by each unit is $22.00.
a) The break-even point in dollars for the proposal by Vendor A = $
whole number).
b) The break-even point in dollars for the proposal by Vendor B = $
whole number).
(round your response to the nearest
(round your response to the nearest

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