Sroufe 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 $70,000 for proposal B. The variable cost is $14.00 for A and $11.00 for B. The revenue generated by each unit is $20.00. a) The break-even point in units for the proposal by Vendor A = units (round your response to the nearest whole number). b) The break-even point in units for the proposal by Vendor B = units (round your response to the nearest whole number).

Sroufe 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 $70,000 for proposal B. The variable cost is $14.00 for A and $11.00 for B. The revenue generated by each unit is $20.00. a) The break-even point in units for the proposal by Vendor A = units (round your response to the nearest whole number). b) The break-even point in units for the proposal by Vendor B = units (round your response to the nearest whole number).

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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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?
Markland Manufacturing intends to increase capacity by overcoming a bottleneck operation byadding 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 revenuegenerated 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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