Question

View History Bookmarks Window Help OSCM 3321- Yang Fall 2019 Amanda Lawrence & I 10/7/19 8:53 AM Homework: HW #3 Supplement 7 Save Score: 0 of 1 pt 19 of 30 27 complete HW Score: 80.28%, 24.08 of 30 pts Problem S7.19 Question Help Manand Manufacturing intends to increase capacity by overcoming a bonek oorwin by adding new equipment. Two vendors have presented proposals. The feed costs are $60,000 for proposal Aand 575.000 for proposal. The variable costs $14.00 for A and 5000 for the revenue generied by each unit is $24.00 Vendor A and Vendor have the same cost when the output volume s uis round your response to the nearest whole number Enter your answer in the answer box and then click Check Answer All parts showing Check Answer ►

Answer 1

Let the break even point between A and B be X, then

Total Cost for A = Total Cost for B

60000 + 14*X = 75000 + 9*X

5*X = 15000

X = 3000 units