Compute the breakeven volume, Operation Management

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The following table shows the critical factors in a company's decision on choosing a new piece of equipment. Calculate the breakeven volume and utilization for each option and then find the range of volumes for which each option is the best decision.

	Machine A	Machine B
Fixed Costs/Month	$ 20,000.00	$ 10,000.00
Variable Cost/Unit	$ 3.90	$ 4.25
Revenue/Unit	$ 21.00	$ 19.00
Capacity/Month	2500	1000
Breakeven Volume
Breakeven Utilization
Best Option Volume Range:
min
max

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