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Given the data in Problem, at what volume (units) of output would the two alternatives yield the same profit ? Problem Markland Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding 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 $12.00, and for B, $10.00. The revenue generated by each unit is $20.00.
a) What is the break-even point in units for proposal A?
b) What is the break-even point in units for proposal B?
XYZ Ltd has three machines in operation. Machine A was bought on 1st January 20x3 at $250,000 and the other two machines; machine B and machine C were bought on 1st January 20x4 at $ 350,000 and $ 300,000 respectively. The business has a policy to..
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