The following table shows the critical factors in a company's decision on choosing a new piece of equipment. Calculate the breakeven volume and utilization for each option and then find the range of volumes for which each option is the best decision.
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Machine A
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Machine B
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Machine C
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|
Fixed Costs/Month
|
$ 6,000.00
|
$ 17,000.00
|
$ 10,000.00
|
|
Variable Cost/Unit
|
$ 87.00
|
$ 51.00
|
$ 68.00
|
|
Revenue/Unit
|
$ 250.00
|
$ 250.00
|
$ 250.00
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|
Capacity/Month
|
100
|
500
|
200
|
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Breakeven Volume
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|
|
|
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Breakeven Utilization
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|
|
|
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Best Option Volume Range
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|
|
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min
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|
|
|
|
max
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|
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