Wolfgang Kersten Mfg. intends to increase capacitythrough the addition of new equipment. Two vendors havepresented proposals. The fixed costs for proposal X are $150,000,and for proposal Y, Sl70,000. The variable cost for X is $120.00,and for Y, $100.00. The revenue generated by each unit is $200.00.a) What is the break-even point in units for proposal X?b) What is the break-even point in units for proposal Y?
Wolfgang Kersten Mfg. intends to increase capacitythrough the addition of new equipment. Two vendors havepresented proposals. The fixed costs for proposal X are $150,000,and for proposal Y, Sl70,000. The variable cost for X is $120.00,and for Y, $100.00. The revenue generated by each unit is $200.00.a) What is the break-even point in units for proposal X?b) What is the break-even point in units for proposal Y?
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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| Wolfgang Kersten Mfg. intends to increase capacity through the addition of new equipment. Two vendors have presented proposals. The fixed costs for proposal X are $150,000, and for proposal Y, Sl70,000. The variable cost for X is $120.00, and for Y, $100.00. The revenue generated by each unit is $200.00. a) What is the break-even point in units for proposal X? b) What is the break-even point in units for proposal Y? |
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