Chapter 1, Problem 25P NO SOLUTIONS please put the solutions ASAP thanks and bes

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Chapter 1, Problem 25P

NO SOLUTIONS

please put the solutions ASAP

thanks and best regard

e Quantitative Analysis For × www.chegg.com/homework-help/Quantitative-Analysis-for-Management-12th-edition-chapter-1-problem-25P- C Search Chegg BOOKS STUDY TUTORS TEST PREP INTERNSHIPS COLLEGES Search Problem Zoe Garcia is the manager of a small office support business that supplies copying, binding and other services for local companies. Zoe must replace a worn-out copy machine that is used for black and white copying. Two machines are being considered, and each of these has a monthly lease cost plus a cost for each page that is copied. Machine 1 has a monthly lease cost of $600, and there is a cost of $0.010 per page copied. Machine 2 has a monthly lease cost of $400, and there is a cost of $0.015 per page copied. Customers are charged $0.05 per page for copies (a) What is the break-even point for each machine? (b) If Zoe expects to make 10,000 copies per month, what would be the cost for each machine? (c) If Zoe expects to make 30,000 copies per month, what would be the cost for each machine? (d) At what volume (the number of copies) would the two machines have the same monthly cost? What would the total revenue for this number of copies? or black and white cc page that is copied. Machine 1 has a monthly lease cost> ro Step-by-step solution There is no solution to this problem yet Get help from a Chegg subject expert. Ask an expert

Explanation / Answer

Ans 1 - Break even point in units = Fixed cost / (Price - Variable cost) per unit

Machine 1 = 600 / (0.05 - 0.01) = 15000 copies

Machine 2 = 400 / (0.05 - 0.015) = 11429 copies

Ans 2 - Cost of producing 10000 copies

Machine 1 = 600 + (10000 x 0.01) = $700

Machine 2 = 400 + (10000 x 0.015) = $550

Ans 3 - Cost of producing 30000 copies

Machine 1 = 600 + (30000 x 0.01) = $900

Machine 2 = 400 + (30000 x 0.015) = $850

Ans 4 - Copies at which both machines will have the same cost

let the number of copies be x

600 + 0.01x = 400 + 0.015x

200 = 0.005x

x = 200 / 0.005 = 40000 copies

Revenue at 40000 copies = 40000 x 0.05 = $2000

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