rachael724
Junior Member
- Joined
- Sep 14, 2005
- Messages
- 95
Sammy Sleaze has decided to illegally copy CD’s to sell in his CD store. There are several possible CD copiers that sales reps have shown him. Machine A has a fixed cost of $1000 with a variable cost of $1 per unit. Machine B has a fixed cost of $3000 with a variable cost of $0.80 per unit. Machine C has a fixed cost of $10,000 with a variable cost of $0.50 per unit.
a. Mathematically calculate the point (in CD’s copied) at which the total costs are equal between machines A and B. You must show your work for full credit.
b. Mathematically calculate the point (in CD’s copied) at which the total costs are equal between machines A and C. You must show your work for full credit.
c. Mathematically calculate the point (in CD’s copied) at which the total costs are equal between machines B and C. You must show your work for full credit.
d. For each machine A, B and C, draw the total cost lines on the graph included. Label all important points. Please turn the page 90 degrees clockwise for best fit of the data on the graph. Neatness and proper scaling count.
e. Write a decision rule for selection of machines based on anticipated number of CD’s copied
a. Mathematically calculate the point (in CD’s copied) at which the total costs are equal between machines A and B. You must show your work for full credit.
b. Mathematically calculate the point (in CD’s copied) at which the total costs are equal between machines A and C. You must show your work for full credit.
c. Mathematically calculate the point (in CD’s copied) at which the total costs are equal between machines B and C. You must show your work for full credit.
d. For each machine A, B and C, draw the total cost lines on the graph included. Label all important points. Please turn the page 90 degrees clockwise for best fit of the data on the graph. Neatness and proper scaling count.
e. Write a decision rule for selection of machines based on anticipated number of CD’s copied
