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 are $ 50,000 for proposal A and $ 70,000 for proposal B.

The variable cost is $ 12.00 for A and $ 10.00 for B. The revenue generated by each unit is $ 20.00 .

Vendor A and Vendor B have the same cost when the output volume? = ____ ?(round your response to the nearest whole? number).

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Operation Management: Markland manufacturing intends to increase capacity by
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