Tom Johnson Manufacturing intends to increase capacity through the addition of 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 dollars for proposal A? ( enter your response as a whole number)
B) What is the break-even point in dollars for proposal B? ( enter your response as a whole number)