Assume that you and your brother plan to open a business that will

Assume that you and your brother plan to open a business that will make and sell a newly designed type of sandal. Two robotic machines are available to make the sandals, Machine A and Machine B. The price per pair will be $19.50 regardless of which machine is used. The fixed and variable costs associated with the two machines are shown below. What is the difference between the breakeven points for Machines A and B? (Hint: Find BEB - BEA)


Machine A
Price per pair (P) $19.50
Fixed costs (F) $25,000
Variable cost/unit (V) $7.00

Machine B
Price per pair (P) $19.50
Fixed costs (F) $100,000
Variable cost/unit (V) $4.00

Answer
3,784
4,318
3,739
4,674
4,452