Markland manufacturing intends to increase capacity by, Operation Management

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Markland manufacturing intends to increase capacity by

Markland 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.

What is the break-even point in units for proposal A?

What is the break-even point in units for proposal B?

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