Joe's machine shop has identified the grinding station as its key bottleneck and has identified two options for expansion. The grinder 1000 has fixed costs of $20,000 and $10 per unit variable costs. The Grinder 2000 has fixed costs of $40,000 and $8 per unit variable costs. Revenue per unit is projected to be $16.;a. determine the break-even point for each alternative.;b. at what volume of output would the two alternatives yield the same profit?;c. if demand is 13,000 units, which option yields a higher profit? how much?
Paper#20834 | Written in 18-Jul-2015Price : $22