A company needs to replace on old machine that is used to produce a primary product. The selling price of the product will be $219 per unit. Two different machines that could produce the product are being considered. Machine A would have an annual fixed cost of $9,500 and a variable cost per unit of $119. Machine B would have an annual fixed cost of $7,900 and a variable cost per unit of $128. a. Compute the annual break-even quantity for each machine. b. Based on annual cost, at what annual volume would the company be indifferent to purchasing Machine A or B

The monthly demand equation for an electric utility company is estimated to be p equals 60 minus left parenthesis 10 superscript negative 5 baseline right parenthesis x, where p is measured in dollars and x is measured in thousands of killowatt-hours. the utility has fixed costs of $3 comma 000 comma 000 per month and variable costs of $32 per 1000 kilowatt-hours of electricity generated, so the cost function is upper c left parenthesis x right parenthesis equals 3 times 10 superscript 6 baseline plus 32 x. (a) find the value of x and the corresponding price for 1000 kilowatt-hours that maximize the utility's profit. (b) suppose that the rising fuel costs increase the utility's variable costs from $32 to $38, so its new cost function is upper c 1 left parenthesis x right parenthesis equals 3 times 10 superscript 6 baseline plus 38 x. should the utility pass all this increase of $6 per thousand kilowatt-hours on to the consumers?