Project #39764 - MSIS212

Homework Problem Chapter 1-30

Bismarck 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.

  1. What is the break-even point for each proposal?
  2. If the expected volume is 8,300 units, which
    alternative should be chosen.

Subject Computer
Due By (Pacific Time) 09/12/2014 12:00 am
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