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?

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?

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter4: Extent (how Much) Decisions

Section: Chapter Questions

Problem 4.2IP

See similar textbooks

Similar questions

Please see the attached29
Please dear expert not hand written.
Question 1 4 pts Joan Zorba orders calculators for her office supply stores. Each calculator cost $35, currently she is ordering 230. Daily demand for these calculators is 5. The cost to re-order this item is estimated at $44, while the annual inventory holding cost is 22%. Orders are received two working days after an order is placed. The office operates 52 weeks per year, 5 days per week. What is the total annual cost using the EOQ? O Greater than or equal to $3377 and less than or equal to $3477 O Greater than or equal to $900 and less than or equal to $990 Greater than or equal to $4475 and less than or equal to $4576 Greater than or equal to $1688 and less than or equal to $1788 Next ▸
Answer the attach file
A production order for 200 units is recieved. The item is made on a machine that has a $20 set-up, an output of six items per hour, and a daily fixed cost of $100. The variable item cost is $1.00. What is the highest price the cmpany could afford to buy the item for, instead of producing the item itself?
Utilities Some rental units have certain expenses included with the rent. Water, electricity, and heating are often referred to as utilities. Some tenancy agreements require the tenant to pay for utilities. 7. a) Bianca and Sarah rent a semi-detached house. They pay for utilities as well as rent. Complete the chart to determine their estimated annual cost for utilities. Average Billing Frequency Estimated Amount Billed Annual Cost Item Natural gas Monthly $118 Electricity Bi-monthly $140 Water Quarterly $120 Estimated Total Annual Cost b) A news report claimed that utility costs would rise by an average of 10% next year. Estimate how much Bianca and Sarah can expect to pay for utilities next year. 0
Solutions for 8, and 12
Target buys hand sanitizers from the wholesaler at $3 and sells them in their stores at $8. Find the original markup. Now, assume the hand sanitizers does not sell for $8 so the store has to reduce the price by 10%. Calculate the final selling price and the maintained markup.
For a table manufacturing company, selling price for a table is $188.00 per Unit, Variable cost is $28.00 per Unit, rent is $4, 670.00 per month and insurance is $ 271.00 per month. Company wants to expand its business and improve the table quality, it wants to increase the selling price for a table to $350.00 per Unit, Variable cost to $48.00 per Unit, bigger area will have rent $6, 537.00 per month and insurance is $406.00 per month At what point will the company be indifferent between the current mode of operation and the new option?
average cost of producing 220 units
What is the markup price for the Acme1 battery? HINT: Calculate markup price as Unit Cost/ (1-Markup%) $30 $35.20 $42.50 $34
new cruise missile guidance control. The i rst unit took 4,000 hours to complete and cost $30,000 in materials and equipment usage. The second took 3,200 hours and cost $21,000 in materials and equipment usage. Labor cost is charged at $18 per hour. The prime contractor has now approached URA and asked to submit a bid for the cost of producing another 20 guidance controls.a. What will the last unit cost to build?b. What will be the average time for the 20 missile guidance controls?c. What will the average cost be for guidance control for the 20 in the contract?