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?
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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?
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- Using the data in "Sroufe Manufacturing intends to increase capacityby overcoming a bottleneck operation by adding new equipment.Two vendors have presented proposals. The fixed costs for proposalA are $50,000, and for proposal B, $70,000. The va riablecost for A is $12.00, and fo r B, $10.00. The revenue generated byeach 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?a) What is the brea k-even point in dollars for proposal A if youadd $10,000 installation to the fixed cost?b) What is the break-even point in dollars for proposal B if youadd S l 0,000 installation to the fixed cost?Sroufe Manufacturing intends to increase capacityby overcoming a bottleneck operation by adding new equipment.Two vendors have presented proposals. The fixed costs for proposalA are $50,000, and for proposal B, $70,000. The va riablecost for A is $12.00, and fo r B, $10.00. The revenue generated byeach 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?Stapleton Manufacturing intends to increasecapacity through the addition of new equipment. Two vendors have presented proposals. The fixed cost for proposal A is$65,000, and for proposal B, $34,000. The variable cost for A is$10, and for B, $14. The revenue generated by each unit is $18.a) What is the crossover point in units for the two options?b) At an expected volume of 8,300 units, which alternativeshould be chosen?
- Stapleton Manufacturing intends to increase capac-ity through the addition of new equipment. Two vendors have presented proposals. The fixed cost for proposal A is $65,000, andfor proposal B, $34,000. The variable cost for A is $10, and for B,$14. The revenue generated by each unit is $18. a) What is the crossover point in units for the two options?b) At an expected volume of 8,300 units, which alternative shouldbe chosen?Markland Manufacturing intends to increase capac-ity by overcoming a bottleneck operation by adding new equip-ment. Two vendors have presented proposals. The fixed costs for proposal A are $50,000, and for proposal B, $70,000. The variablecost for A is $12.00, and for B, $10.00. The revenue generated byeach 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?Say, you have newly appointed as an operation manager in a startup Manufacture Company. What will be your necessary steps for capacity planning of this new manufacture company? Steps for Capacity Planning 1.Estimate future capacity requirements 2.Evaluate existing capacity 3.Identify alternatives 4.Conduct financial analysis 5.Assess key qualitative issues 6.Select one alternative 7.Implement alternative chosen 8.Monitor results Please explain all steps...
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