Mark land manufacturing intends to increase capacity by, Business Management

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Mark land manufacturing intends to increase capacity by

Given the data in Problem, at what volume (units) of output would the two alternatives yield the same profit?

Problem
Mark land 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?

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