Route Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have presented proposals.
Route Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have presented proposals. The fixed costs are $60,000 for proposal A and $70,000 for proposal B. The variable cost is $13.00 for A and $11.00 for B. The revenue generated by each unit is $2200.
a) The break-even point in units for the proposal by Vendor A units (round your response to the nearest whole number)
b) The break-even point in units for the proposal by Vendor B = units (round your response to the nearest whole number).
