Nagle? Electric, Inc., of Lincoln, Nebraska, must replace a robotic Mig welder and is evaluating two alternatives. Machine A has a fixed cost for the first year of $85,000 and a variable cost of $15, with a capacity of 14,000 units per year. Machine B is slower, with a speed of one-half of A's, but the fixed cost is only $50,000. The variable cost will be higher, at $19 per unit. Each unit is expected to sell for $24.
a) What is the crossover point (point of indifference) for the two machines?
The crossover point for the two machines is _______ units. (Round your response to the nearest whole number.)
b) What is the range of units for which machine A is preferable?
Machine A is preferable at a level of production _____and ______ units.
units. (Enter your response as a whole number.)
c) What is the range of units for which machine B is preferable?
Machine B is preferable at a level of production ____ and ______ units.