Sroufe 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 $70,000 for proposal B. The variable cost is $14.00 for A and $11.00 for B. The revenue generated by each unit is $20.00. a) The break-even point in units for the proposal by Vendor A = units (round your response to the nearest whole number). b) The break-even point in units for the proposal by Vendor B = units (round your response to the nearest whole number).
Sroufe 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 $70,000 for proposal B. The variable cost is $14.00 for A and $11.00 for B. The revenue generated by each unit is $20.00. a) The break-even point in units for the proposal by Vendor A = units (round your response to the nearest whole number). b) The break-even point in units for the proposal by Vendor B = units (round your response to the nearest whole number).
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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Sroufe 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 $70,000 for proposal B. The variable cost is $14.00 for A and $11.00 for B. The revenue generated by each unit is $20.00.
a) The break-even point in units for the proposal by Vendor A =
units (round your response to the nearest whole number).
units (round your response to the nearest whole number).
b) The break-even point in units for the proposal by Vendor B =
units (round your response to the nearest whole number).
units (round your response to the nearest whole number).
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