dolution

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 $86,000 and a variable cost of $20, with a capacity of 17,000 units per year Machine B is slower with a speed of one-half of A’s, but the fixed cost is only $52,000. The variable cost will be higher, at $24 per unit. Each unit is expected to sell for $29. a) What is the crossover point (point of indifference) for the two machines? The crossover point for the two machines is units.