Short Answer
There are two machines available in the market for making frozen pancakes. Machine A incurs a fixed cost of per year and a variable cost of per pancake. Machine B incurs a fixed cost of per year and a variable cost of per pancake. The selling price is per pancake.
(A) If the expected sales volume per year is 600,000 , which machine will give higher net contribution?
(B) If the expected sales volume per year is 1,000,000, which machine will give higher net contribution?
(C) What is the breakeven volume of Machine A?
Correct Answer:

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