Operations Management: Sustainability and Supply Chain Management (12th Edition)
Operations Management: Sustainability and Supply Chain Management (12th Edition)
12th Edition
ISBN: 9780134130422
Author: Jay Heizer, Barry Render, Chuck Munson
Publisher: PEARSON
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Chapter 7.S, Problem 18P

Using the data in Problem S7.17.

  1. a. What is the break-even point in dollars for proposal A 1f you add $10,000 installation to the fixed cost?
  2. b. What is the break-even point in dollars for proposal B if you add $10,000 installation to the fixed cost?

S7.17 Markland Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have presented proposals. The fixed costs for proposal A are $50 000, and for proposal B, $70 000. The variable cost for A is $12 00, and for B, $10 00. The revenue generated by each unit is $20.00

  1. a. What is the break-even point in units for proposal A?
  2. b. What is the break-even point in units for proposal B?
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Chapter 7 Solutions

Operations Management: Sustainability and Supply Chain Management (12th Edition)

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