Assume That You and Your Brother Plan to Open a Business

Multiple Choice

Assume that you and your brother plan to open a business that will make and sell a newly designed type of sandal. Two robotic machines are available to make the sandals, Machine A and Machine B. The price per pair will be $20.00 regardless of which machine is used. The fixed and variable costs associated with the two machines are shown below. What is the difference between the breakeven points for Machines A and B? (Hint: Find BEB - BEA)

A) 3,154
B) 3,505
C) 3,894
D) 4,327
E) 4,760