S7.19Markland Manufacturing intends to increase capacity by overcoming a bottleneck operation by addingnew equipment. Two vendors have presented proposals. The fixed costs for proposal A are $50,000, andfor proposal B, $70,000. The variable cost for A is $12.00, and for B, $10.00. The revenue generated byeach unit is $20.00. Given the data in Problem, at what volume (units) of output would the twoalternatives yield the same profit?

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Answered: Markland Manufacturing intends to…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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A real estate agent is considering changing her land line phone plan. There are three plans to choose from, all of which involve a monthly service charge of $20. Plan A has a cost of $.43 a minute for daytime calls and $.18 a minute for evening calls. Plan B has a charge of $.53 a minute for daytime calls and $.15 a minute for evening calls. Plan C has a flat rate of $80 with 250 minutes of calls allowed per month and a charge of $.40 per minute beyond that, day or evening. a. Determine the total charge under each plan for this case: 140 minutes of day calls and 60 minutes of evening calls in a month. (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. If the agent will only use the service for daytime calls, over what range of call minutes will each plan be optimal? (Round each answer to the nearest whole number. Include the indifference point itself in each answer.) c. Suppose that the agent expects both daytime and evening calls. At what point…
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A hospital is considering a new procedure to be offered at $200 per patient. The fixed cost per year would be$100,000, with total variable costs of $100 per patient. What is the break-even quantity for this service? Useboth algebraic and graphic approaches to get the answer.
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