Nagle Electric, Inc., of Lincoln, Nebraska, must replace a robotic Mig welder and is evaluating two alternatives. Machine A has a fixed cost for the first year of $83,000 and a variable cost of $13, with a capacity of 16,000 units per year. Machine B is slower, with a speed of one-half of A's, but the fixed cost is only $58,000. The variable cost will be higher, at $18 per unit. Each unit is expected to sell for $23. a) What is the crossover point (point of indifference) for the two machines? The crossover point for the two machines is units. (Round your response to the nearest whole number.)

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Nagle Electric, Inc., of Lincoln, Nebraska, must replace a robotic Mig welder and is evaluating two alternatives. Machine A has a fixed cost for the first year of $83,000 and a variable cost of $13, with a capacity of
16,000 units per year. Machine B is slower, with a speed of one-half of A's, but the fixed cost is only $58,000. The variable cost will be higher, at $18 per unit. Each unit is expected to sell for $23.
a) What is the crossover point (point of indifference) for the two machines?
The crossover point for the two machines is
units. (Round your response to the nearest whole number.)
Clear all
Check answer
11:47 PM
Transcribed Image Text:Nagle Electric, Inc., of Lincoln, Nebraska, must replace a robotic Mig welder and is evaluating two alternatives. Machine A has a fixed cost for the first year of $83,000 and a variable cost of $13, with a capacity of 16,000 units per year. Machine B is slower, with a speed of one-half of A's, but the fixed cost is only $58,000. The variable cost will be higher, at $18 per unit. Each unit is expected to sell for $23. a) What is the crossover point (point of indifference) for the two machines? The crossover point for the two machines is units. (Round your response to the nearest whole number.) Clear all Check answer 11:47 PM
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