Question

5) Assume that you and your brother plan to open a business that will make and sell a newly designed type of sandal. Two robotic machines are available to make the sandals, Machine A and Machine B. The price per pair will be $20.00 regardless of which machine is used. The fixed and variable costs associated with the two machines are shown below. What is the difference between the break-even points for Machines A and B? (Hint: Find BE BEA) Machine A Machine B $20.00 S25.000 100,000 S4.00 $20.00 Price per pair (P) Fixed costs (F) Variable cost/unit (V) $7.00 3,154 3,505 3,894 4,327 4,760

Answer 1

MachineA Machines poinli Ber-a500 o BEP- Loo,000 a5-2 20-4 00,620 16 13 6050 ( 1923 - 4327