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Business, 16.04.2020 20:24 zlittleton2008

A manufacturing company intends to increase capacity by overcoming a bottleneck operation through the addition of new equipment. Two vendors have presented proposals. The fixed costs for proposal A are $50,000 and for proposal B $70,000. The variable cost per unit for A is $12 and for B $10. The revenue generated by each unit is $20. If the expected sales volume is 15,000 units which alternative should be chosen?

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