Overcoming a Bottleneck Operation
September 9th, 2022
Markland Manufacturing intends to increase capacity by overcoming a bottleneck operation through the addition of 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 $15.00, and for B, $6.00. The revenue generated by each unit is $20.00.
What is the break-even point in units for proposal A?
____________ units
Round your answer to the nearest whole number; for example, 1234 .
What is the break-even point in units for proposal B?
____________ units
Round your answer to the nearest whole number; for example, 1234 .