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# Another shoe manufacturer, Shoes 4U, makes three models of shoe and they wish you to determine their break-even point in dollars. Their monthly...

1. Another shoe manufacturer, Shoes 4U, makes three models of shoe and they wish you to determine their break-even point in dollars.

- Their monthly fixed cost is $6000.
- The price of the Dress Shoe is $10, it costs $6 to manufacture and annual sales are forecasted at 18000 pairs.
- The price of the Sandle Shoe is $3, it costs $1 to manufacture and annual sales are forecasted at 18000 pairs.
- The price of the Runner Shoe is $4, it costs $2 to manufacture and annual sales are forecasted at 14000 pairs.

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?