Weiss 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 $80,000 for proposal B. In addition to the proposed fixed costs from the two vendors, Weiss's management anticipates that they will have to spend $ 10 comma 000$10,000 for installations to be completed. The variable cost is $13.00 for A and $12.00 for B. The revenue generated by each unit is $20.00.
a) The break-even point in dollars for the proposal by Vendor A=
(round your response to the nearest whole number).
b) The break-even point in dollars for the proposal by Vendor B=
(round your response to the nearest whole number).
Answers: 3
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