DEVRY BSOP 209 Week 3 Homework
Assignment
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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.
a) What is the break-even point in units for proposal A?
b) What is the break-even point in units for proposal B?
S7.18
Using the data in Problem S7.17: