Problem 5-4 (Algo) A small firm Intends to increase the capacity of a bottleneck operation by adding a new machine. Tvo alternatives, A and B, have been identified, and the associated costs and revenues have been estimated. Annual fixed costs would be $36,000 for A and $31,000 for B; variable costs per unit would be $7 for A and $11 for B; and revenue per unit would be $17. a. Determine each alternative's break-even point in units. (Round your answer to the nearest whole amount.) QBEPA units OBEPB units b. At what volume of output would the two alternatives yield the some profit (or loss)? (Round your answer to the nearest whole amount.) units

Problem 5-4 (Algo) A small firm Intends to increase the capacity of a bottleneck operation by adding a new machine. Tvo alternatives, A and B, have been identified, and the associated costs and revenues have been estimated. Annual fixed costs would be $36,000 for A and $31,000 for B; variable costs per unit would be $7 for A and $11 for B; and revenue per unit would be $17. a. Determine each alternative's break-even point in units. (Round your answer to the nearest whole amount.) QBEPA units OBEPB units b. At what volume of output would the two alternatives yield the some profit (or loss)? (Round your answer to the nearest whole amount.) units

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter1: Introduction And Goals Of The Firm

Section: Chapter Questions

Problem 2.2CE

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