Nagle electric, inc., of lincoln, nebraska, must replace a robotic mig welder and is evaluating two alternatives. machine a has a fixed cost for the first year of

$78,000 and a variable cost of $1414, with a capacity of 16,000 units per year. machine b isslower, with a speed ofone-half of a's, but the fixed cost is only $57,000. the variable cost will be higher, at $1818 per unit. each unit is expected to sell for $2525.

a) what is the crossover point (point of indifference) for the two machines?

the crossover point for the two machines is and units. (round your response to the nearest wholenumber.)

b) what is the range of units for which machine a ispreferable?

machine a is preferable at a level of production

units.

units. (enter your response as a whole number.)

c) what is the range of units for which machine b ispreferable?

machine b is preferable at a level of production and units

(enter your response as a whole number.)

(i) 5,250 units

(ii) above 5,250 units

(iii) below 5250 units ; 0 and 5249 units

Explanation:

Given ,

Machine A

Fixed cost = $78,000

Variable cost = $14

Capacity = 16,000 units

Total cost = Fixed cost + Variable cost × no. of units

Total cost = $78,000 + 14Q

Machine B

Fixed cost = $57,000

Variable cost = $18

Total cost = Fixed cost + Variable cost × no of units

Total cost = $57,000 + 18 Q

a) Cross over point is the point where total cost is equal

Cross over point = Q

$78,000 + 14 Q = $57,000 + 18 Q                    

78,000 – 57,000 = 4Q

21000 = 4Q

Q = 5250 units

Crossover point for the two machines is 5,250 units

b) Machine A is preferable above 5,250 units

Machine A is preferable at a level of production above 5,251 units

c) Machine B is preferable below 5250 units

Machine B is preferable at a level of production 0 and 5249 units

if it is for a job, then you should learn everything you can about the job, like what does it involve, what qualification is required and how you are the right person for that job. dress appropriately for the interview. get plenty of rest the night before. good luck!