A decision must be made between two different machines, A and B. The machines will produce the same product, but only on
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A decision must be made between two different machines, A and B. The machines will produce the same product, but only on
company estimates that the selling price per unit for the product will be $24. The variable cost of production per unit if machine A is selected is believed to be $7. The variable cost of production if machine B is selected is believed to be $20. The fixed cost of machine A is $2,473,500, and the fixed cost of machine B is $540,000. a. The break-even quantity is units if machine A is selected. (Enter your response as a whole number.) b. The break-even quantity is units if machine B is selected. (Enter your response as a whole number.) c. If total demand for the product is believed to be 180,500 units, which machine will make the greater contribution to profit? The contribution to profit is $ if machine A is selected. (Enter your response as a whole number.) The contribution to profit is $ if machine B is selected. (Enter your response as a whole number.)
A decision must be made between two different machines, A and B. The machines will produce the same product, but only one type of machine (either A or B) will be purchased. The