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A small firm intends to increase the capacity of a bottleneck operation

/in /by

A small firm intends to increase the capacity of a bottleneck operation
by adding a new machine. Two alternatives, A and B, have been identified, and the associated costs and revenues have been estimated. Annual fixed costs would be $36,000 for A and $31,000 for B; variable costs per unit would be $7 for A and $11 for B; and revenue per unit would be $18.

Determine each alternative’s break-even point in units. (Round answer to the nearest whole amount.)

QBEP,A ? units
QBEP,B ? units

At what volume of output would the two alternatives yield the same profit?(Round answer to thenearest whole amount.)

Profit ? units

 
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