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 $30.00 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 break-even points for Machines A and B? Do not round your intermediate calculations.(Hint: Find BE_B - BE_A) $\begin{array}{lrr} & \text { Machine A } & \text { Machine B } \\\text { Price per pair (P) } & \$ 30.00 & \$ 30.00 \\\text { Fixed costs (F) } & \$ 25,000 & \$ 100,000 \\\text { Variable cost/unit (V) } & \$ 7.00 & \$ 4.00\end{array}$
?

A) 3,035
B) 2,235
C) 2,069
D) 2,621
E) 2,759