Markland Manufacturing manufactures desk lamps intends to increase capacity by obtaining new equipment. Two vendors have presented proposals. The purchase cost for proposal A is $30,000, and for proposal B, $80,000. Each proposal will produce lamps of the same quality. Proposal A is expected to produce lamps at $15.00/lamp, while proposal B is significantly more efficient and will produce them at $10.00/lamp. The revenue generated by the sale of each lamp is $20.00/unit.
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Answer:
$20
Explanation:
Answer a= The expected revenue from each lamp is given as $20/unit so the same revenue line will be used for both the proposals to represent the graph of potential revenue as below Quantity Revenue Rev…
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