10. A manager must decide how many machines of a certain type to purchase. Each
ID: 470944 • Letter: 1
Question
10.
A manager must decide how many machines of a certain type to purchase. Each machine can process 100 customers per day. One machine will result in a fixed cost of $2,200 per day, while two machines will result in a fixed cost of $4,000 per day. Variable costs will be $17 per customer, and revenue will be $45 per customer.
10.
A manager must decide how many machines of a certain type to purchase. Each machine can process 100 customers per day. One machine will result in a fixed cost of $2,200 per day, while two machines will result in a fixed cost of $4,000 per day. Variable costs will be $17 per customer, and revenue will be $45 per customer.
Explanation / Answer
a) break even point
one machine = 79 customers
two machine = 143 customers
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