A fabrication company wants to increase capacity by adding a new machine. The first is considering proposals from Vendor A and Vendor B.

3.    A fabrication company wants to increase capacity by adding a new machine. The first is considering proposals from Vendor A and Vendor B. The fixed cost for machine A are $80,000 and for machine B, $58,000. The variable cost for A is $12.00 per unit and for B, $14.00. The revenue generated by the units processed on these machines is $24 per unit. If the estimated output is 5000 units, which machine should be purchased and why?