Texas A&M University-Commerce Operations And Supply Chain Management Assignment Help - A quick description

Question - A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Tow
alternatives, A and B, have been identified, and the associated costs and revenues have been
estimated. Annual fixed costs would be $40,000 for A and $30,000 for B; variable costs per unit would
be $10 for A and $11 for B; and revenue per unit would be $15. A. Determine each alternatives break-
even point in units. B. At what volume of output would the two alternatives yield the same profit? C. If
expected annual demand is 12,000 units, which alternative would yield the higher profit? Please show
all work.

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