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Category > Accounting Posted 19 Jun 2017 My Price 6.00

Stapleton Manufacturing intends to increase capacity through the addition of new equipment.

Stapleton Manufacturing intends to increase capacity through the addition of new equipment. Two vendors have presented proposals. The fixed cost for proposal A is $65,000, and for proposal B, $34,000. The variable cost for A is $10, and for B, $14. The revenue generated by each unit is $18.

a) What is the crossover point in units for the two options?

b) At an expected volume of 8,300 units, which alternative should be chosen?

 

Answers

Alpha Geek
(8)
Status NEW Posted 19 Jun 2017 11:06 AM My Price 6.00

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Attachments

file 1497871248-1918015_1_636331777291910583_Break-oven-crossover-point.xlsx preview (187 words )
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