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 > Applied Sciences Posted 29 Jul 2017 My Price 6.00

Photo station Company

Photo station Company operates a printing service for customers with digital cameras. The current service, which requires employees to download photos from customer cameras, has monthly operating costs of $6,000.00 plus $0.20 per photo printed. Management is evaluating the desirability of acquiring a machine that will allow customers to download and make prints without employee assistance. If the machine is acquired, the monthly fixed costs will increase to $10,000.00 and the variable costs of printing a photo will decline to $0.04 per photo.

 

A) Determine the total costs of printing 20,000 and 50,000 photos per month:

1. With the current employee-assisted process.

2. With the proposed customer self-service process.

 

B) Determine the monthly volume at which the proposed process becomes preferable to the current process.

Answers

Maurice Tutor
(5)
Status NEW Posted 29 Jul 2017 10:07 PM My Price 6.00

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