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Author Question: A fabrication company wants to increase capacity by adding a new machine. The firm is considering ... (Read 234 times)

joe

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on: Dec 3, 2019

Question 1

Fabricators, Inc. wants to increase capacity by adding a new machine. The fixed costs for machine A are $90,000, and its variable cost is $15 per unit. The revenue is $21 per unit. The break-even point for machine A is
◦ $15,000 dollars.
◦ $90,000 dollars.
◦ 90,000 units.
◦ 15,000 units.
◦ cannot be calculated from the information provided.

Question 2

A fabrication company 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, $75,000. The variable cost for A is $15.00 per unit and for B, $18.00. The revenue generated by the units processed on these machines is $21 per unit. If the estimated output is 5000 units, which machine should be purchased?
◦ machine A
◦ machine B
◦ no purchase because neither machine yields a profit at that volume
◦ purchase both machines since they are both profitable
◦ either machine A or machine B
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Marked as best answer by joe on Dec 3, 2019

Christopher

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Reply #1 on: Dec 3, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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joe

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Reply 2 on: Dec 3, 2019
Great answer, keep it coming :)

bimper21

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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