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What the break-even point in dollars for the proposal

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Reference no: EM133015001

Problem - Weiss Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have presented proposals. The fixed costs are $50,000 for proposal A and $75,000 for proposal B. In addition to the proposed fixed costs from the two vendors, Weiss's management anticipates that they will have to spend $8,000 for installations to be completed. The variable cost is $14.00 for A and $10.00 for B. The revenue generated by each unit is $24.00.

Required -

a) What the break-even point in dollars for the proposal by Vendor A?

b) What the break-even point in dollars for the proposal by Vendor B?

Reference no: EM133015001

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