Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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a. A manufacturing company wants to increase capacity by adding a new machine. The firm is considering proposals from vendor A and vendor B. The annual fixed costs for machine A are $20,000 and for machine B, $35,000. The variable cost for A is $12 per unit and for B, $8. The revenue per unit is $30. Identify the annual production volumes for which each of the machines would be chosen.
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