Markland Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have presented proposals. The fixed costs are $55,000 for proposal A and $80,000 for proposal B. The variable cost is $13.00 for A and $10.00 for B. The revenue generated by each unit is $20.00.
a) Vendor A and Vendor B have the same cost when the output volume =
b) State at which production ranges each vendor is optimal