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NeX [460]
3 years ago
15

Markland Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors ha

ve presented proposals. The fixed costs are $ 60 comma 000 for proposal A and $ 75 comma 000 for proposal B. The variable cost is $ 13.00 for A and $ 11.00 for B. The revenue generated by each unit is $ 24.00.What is the break-even point in units for proposal A?What is the break-even point in units for proposal B?
Business
1 answer:
Veseljchak [2.6K]3 years ago
3 0

Answer:

Proposal A: 5,455 units

Proposal B: 5,770 units

Explanation:

The break-even point is the number of units required for the revenue to equal the total costs.

For proposal A:

Fixed Costs = $60,000

Variable Costs = $13 / unit

Selling Price = $24 / unit

(P-VC)*n-FC = 0\\(24-13)*n-60,000 = 0\\n=5,454.5\ units

For proposal B:

Fixed Costs = $75,000

Variable Costs = $11 / unit

Selling Price = $24 / unit

(P-VC)*n-FC = 0\\(24-11)*n-75,000 = 0\\n=5,769.2\ units

Rounding up to the next whole unit, the break-even points for proposal A and B, respectively, are 5,455 and 5,770 units.

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3 0
3 years ago
The business arrangement in the newspaper industry in which two separately owned papers in the same city are permitted to combin
musickatia [10]

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8 0
3 years ago
What happens to the price of these needed goods if production declines and there are fewer goods to go around?
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5 0
3 years ago
What is the eventual effect on real GDP if the government increases its purchases of goods and services by $50,000? Assume the m
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Answer:

a. The real GDP increases by $200,000.

a. The real GDP increases by $150,000.

Explanation:

a. What is the eventual effect on real GDP if the government increases its purchases of goods and services by $50,000?

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a. What is the eventual effect on real GDP if the government, instead of changing its spending, increases transfers by $50,000?

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Therefore, the real GDP increases by $150,000.

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2 years ago
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