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Markland Manufacturing intends to increase capacity by overcoming a bottleneck operation by
adding new equipment. Two vendors have presented proposals. The fixed costs are
$60,000 for proposal A and $70,000 for proposal B. The variable cost is $12.00 for A and $9.00 for
B. The revenue generated by each unit is $24.00.
The break-even point in units for the proposal by Vendor A and B?

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Markland Manufacturing intends to increase capacity by overc.pdf

  • 1. Markland Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have presented proposals. The fixed costs are $60,000 for proposal A and $70,000 for proposal B. The variable cost is $12.00 for A and $9.00 for B. The revenue generated by each unit is $24.00. The break-even point in units for the proposal by Vendor A and B?