Wolfgang Kersten Mfg. intends to increase capacity through the addition of new equipment. Two vendors have presented proposals. The fixed costs for proposal X are $150,000, and for proposal Y, $170,000. The variable cost for X is $120.00, and for Y, $100.00. The revenue generated by each unit is $200.00. with a total profit = $ should be chosen (enter your a) If the expected volume is 28,500 units, response as a whole number).

Marketing
20th Edition
ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter19: Pricing Concepts
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example question 11a. please show solution. thank you

Wolfgang Kersten Mfg. intends to increase capacity through the addition of new equipment. Two vendors have
presented proposals. The fixed costs for proposal X are $150,000, and for proposal Y, $170,000. The variable
cost for X is $120.00, and for Y, $100.00. The revenue generated by each unit is $200.00.
with a total profit = $ should be chosen (enter your
a) If the expected volume is 28,500 units,
response as a whole number).
Transcribed Image Text:Wolfgang Kersten Mfg. intends to increase capacity through the addition of new equipment. Two vendors have presented proposals. The fixed costs for proposal X are $150,000, and for proposal Y, $170,000. The variable cost for X is $120.00, and for Y, $100.00. The revenue generated by each unit is $200.00. with a total profit = $ should be chosen (enter your a) If the expected volume is 28,500 units, response as a whole number).
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