Task 3: Monitor and review performance of business operation ( 10 marks)
You are an operations manager of a small manufacturing enterprise. Your owner intends to increase
the production capacity through the addition of new equipment. Two vendors have presented
proposals. The fixed costs for proposal A are $50,000, and for proposal B, $70,000. The variable cost
for A is $12.00, and for B, $10.00. The revenue generated by each unit is $20.00.
a) What is the break-even point in units and dollars for proposal A?
b) What is the bre... More