Break-even point in dollars for the proposal by vendor

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Reference no: EM131276863

Markland Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have presented proposals. The fixed costs are $55,000 for proposal A and $70,000 for proposal B. In addition to the proposed fixed costs from the two? vendors, Markland's management anticipates that they will have to spend $10,000 for installations to be completed. The variable cost is $12.00 for A and $ 12.00 for B. The revenue generated by each unit is $ 24.00

?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).

Reference no: EM131276863

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