Answer:
The break-even point in dollars for the proposal by Vendor A $ 157,142.86
The break-even point in dollars for the proposal by Vendor B =$ 140,000
Explanation:
Weiss Manufacturing
Proposal A Proposal B
The fixed costs $ 55,000 $ 70,000
The variable cost $ 13.00 $ 10.00
The revenue generated
By each unit is $ 20.00 $ 20.00
The break-even point for the proposal by Vendor A= Fixed Costs/Sales Revenue- Variable Costs
Break Even Sales Volume in Dollars= Fixed Costs/ Contribution Margin Ratio
Break Even Sales Volume in Dollars= Fixed Costs/ 1- (variable Costs/ Sales)
The break-even point in dollars for the proposal by Vendor A
= 55,000/1- (13/20)= $ 55000/ 0.35= $ 157,142.86
The break-even point in dollars for the proposal by Vendor B =
= 70,000/ 1- ( 10/20) = 70,000/0.5= $ 140,000
