Find out the break-even point for each range

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Q. 1) A manager must decide Elucidate 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 $2,000 per day, while two machines will result in a fixed cost of $3,800 per day. Variable costs will be $20 per customer also revenue will be $45 per customer.

a. Find out the break-even point for each range.

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

 

Reference no: EM1375900

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