Problem: Arike Ogwumike Manufacturing intends to increase capacity through the addition of new equipment. Two vendors have presented proposals. The fixed cost for proposal A is ?$65 comma 000?, and for proposal? B, ?$34 comma 000. The variable cost for A is ?$10?, and for? B, ?$14. The revenue generated by each unit is ?$18.
a) What is the crossover point for the two? options? The crossover point for the two options is 7,750 units. ?(Round your response to the nearest whole? number.)
?b) At an expected volume of 8 comma 300 ?units, which alternative should be? chosen? The profit? (loss) if proposal A is accepted and 8 comma 300 units are produced is ?$