Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 03 Mar 2018 My Price 5.00

break-even point

11.     A manager must decide how many machines of a certain type to purchase. Each machine can pro- cess 100 customers per day. One machine will result in a fixed cost of $2,000 per day, while two machines will result in a fixed cost of $3,800 per day. Variable costs will be $20 per customer, and revenue will be $45 per customer.

a.    Determine the break-even point for each range.

b.   If estimated demand is 90 to 120 customers per day, how many machines should be purchased?

 

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Maurice Tutor
(5)
Status NEW Posted 03 Mar 2018 10:03 PM My Price 5.00

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