Using the information from Module 7 Problem 1 Part A: Stapleton Manufacturing intends to increase capacity through the addition of new equipment. Two vendors have presented proposals. The fixed cost for proposal A is $63,000, and for proposal B, $27,000. The variable cost for A is $12, and for B, $15. The revenue generated by each unit is $19. At an expected volume of 6,700 units, which alternative should be chosen? Be sure to show your work.

Using the information from Module 7 Problem 1 Part A: Stapleton Manufacturing intends to increase capacity through the addition of new equipment. Two vendors have presented proposals. The fixed cost for proposal A is $63,000, and for proposal B, $27,000. The variable cost for A is $12, and for B, $15. The revenue generated by each unit is $19. At an expected volume of 6,700 units, which alternative should be chosen? Be sure to show your work.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter5: Network Models

Section5.3: Assignment Models

Problem 12P

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