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Business, 19.02.2021 16:30 cdxxc9324

ABC company intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have presented proposals. The fixed cost for proposal A are $10,000, and for proposal B, $8,000. The variable cost for A is $10.00, and for B, $7.00. The revenue generated by each unit is $20.00. You definitely will pick up a machine which will produce the larger profit. If 2000 units will be sold, what will the profit in dollars be generated assuming you have bought a right machine? a. $20,000
b. $25,000
c. $30,000
d. $40,000
e. None of them

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