Final answer:
The break-even point for Sroule Manufacturing's new equipment from Vendor A cannot be determined without additional information, specifically the selling price per unit and the variable cost per unit. The formula to find the break-even point involves dividing fixed costs by the difference between the selling price per unit and the variable cost per unit. Factors such as economies of scale also affect production costs and decisions.
Step-by-step explanation:
To determine the break-even point in units for Sroule Manufacturing's proposal by Vendor A, we need additional data: the selling price per unit and the variable cost per unit. The break-even point calculation is done using the formula:
Break-Even Point in Units = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit)
Since the fixed costs have been provided as $50,000 and we are looking to find the number of units required to break even, without the selling price and variable cost per unit, we cannot calculate the exact break-even point for the proposal by Vendor A. To make such a decision, Sroule Manufacturing would need to consider not only the break-even analysis but also factors highlighting economies of scale, as illustrated in the various figures showing how larger production quantities can lower the average cost of production up to a certain point.
Without complete information, it is not possible to offer a precise answer to how many units constitute the break-even point for Vendor A's proposal. However, the concept of break-even analysis is crucial in understanding how a business can determine when it will start to make a profit.