Answer:
10,000 units
Explanation:
Given:
Total fixed costs for proposal A = $50,000
Total fixed costs for proposal B = $70,000
Variable cost for proposal A = $12
Variable cost for proposal B = $10
Revenue generated by each vendor = $20
let the number of units be 'x'
Now,
Cost of proposal A = Cost of proposal B
Fixed cost + x × Variable cost of proposal A = Fixed cost + x × Variable cost of proposal B
or
$50,000 + x × $12 = $70,000 + x × $10
or
x × $12 - x × $10 = $70,000 - $50,000
or
x × $2 = $20,000
or
x = 10,000 units
