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Western Governors University Operations And Supply Chain Management Assignment Help - Managerial Modeling


Question - 2s 6.
Bismarck manufacturing intends to increase capacity through the addition of new equipment.
Two vendors have presented proposals. The fixed costs for proposal A are $65,000, and for
proposal B, $34,000. The variable cost for A is $10, and for B, $14. The revenue generated by
each unit is $18.

a) What is the break-even point for each proposal?
b)If the expected volume is 8,300 units, which alternative should be chosen?

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