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S_A_V [24]
3 years ago
14

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

presented proposals. The fixed costs are $ 55 comma 000 for proposal A and $ 75 comma 000 for proposal B. The variable cost is $ 14.00 for A and $ 11.00 for B. The revenue generated by each unit is $ 22.00. ​a) The​ break-even point in units for the proposal by Vendor A​ = nothing units ​(round your response to the nearest whole​ number). ​b) The​ break-even point in units for the proposal by Vendor B​ = nothing units ​(round your response to the nearest whole​ number).
Business
1 answer:
Vaselesa [24]3 years ago
3 0

Answer:

A) Proposal A= 6875 units

B) Proposal B= 6818 units

Explanation:

Giving the following information:

Two vendors have presented proposals.

Proposal A:

Fixed costs= $55000.

Variable cost= $ 14.00.  

Proposal B:

Fixed cost= $75000.

Variable cost= $11.00

The revenue generated by each unit is $ 22.00

Break-even point= fixed costs/contribution margin

A) Proposal A= 55000/(22-14)= 6875 units

B) Proposal B= 75000/(22-11)= 6818 units

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<u>$450 is the answer. </u>

<u>The total revenue the company earns after selling 10 boards is $450. </u>

<u> </u>

Further Explanation:

Total Revenue:

Total revenue refers to the total receipts or the income after selling the product.

Total profit:

Total profit refers to the amount subtracted by the total cost of the firm from the total revenue of the firm. Total profit is the excess of the total cost from the total revenue.  

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<u> </u>

Thus, the total revenue the company earns after selling 10 skateboards is $450.

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<u>brainly.com/question/2689578 </u>

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Answer Details:

Grade: High School

Chapter: Total profit

Subject: Accountancy

Keywords: Brenda’s Boards manufactures skateboards. Each skateboard sells for $45 and includes the following expenses: $3 for the wheels and mounts, $1 for the plastic board, $1 for the paint, and $10 for the labor. What is the total revenue the company makes after selling 10 boards? $300 $350 $400 $450.

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