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Author Question: Fred's Fabrication, Inc. wants to increase capacity by adding a new machine. The firm is considering ... (Read 82 times)

nmorano1

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Fred's Fabrication, Inc. wants to increase capacity by adding a new machine. The firm is considering proposals from vendor A and vendor B. The fixed costs for machine A are $90,000 and for machine B, $70,000. The variable cost for A is $9.00 per unit and for B, $14.00. The revenue generated by the units processed on these machines is $20 per unit. The crossover between machine A and machine B is
◦ 4,000 dollars, with B more profitable at low volumes.
◦ cannot be calculated from the information provided.
◦ 4,000 units, with B more profitable at low volumes.
◦ 4,000 units, with A more profitable at low volumes.
◦ 4,000 dollars, with A more profitable at low volumes.


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Marked as best answer by nmorano1 on Dec 3, 2019

kescobar@64

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nmorano1

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Reply 2 on: Dec 3, 2019
YES! Correct, THANKS for helping me on my review


bitingbit

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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