OPEARATIONS MANAG.REV CUSTOM 2017
OPEARATIONS MANAG.REV CUSTOM 2017
17th Edition
ISBN: 9781323590058
Author: Pearson
Publisher: PEARSON C
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Chapter 7.S, Problem 19P

Given the data in Problem S7.17, at what volume (units) of output would the two alternatives yield the same profit?

S7.17 Markland Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have presented proposals. The fixed costs for proposal A are $50 000, and for proposal B, $70 000. The variable cost for A is $12 00, and for B, $10 00. The revenue generated by each unit is $20.00

  1. a. What is the break-even point in units for proposal A?
  2. b. What is the break-even point in units for proposal B?
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Chapter 7 Solutions

OPEARATIONS MANAG.REV CUSTOM 2017

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