Bottleneck operation by adding new equipment

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Reference no: EM131146560

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 $75,000 for proposal B. The variable cost is $12.00 for A and $9.00 for B. The revenue generated by each unit is $20.00. Vendor A and Vendor B have the same cost when the output volume = units (round your response to the nearest whole number).

Reference no: EM131146560

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