Bagot Copy Shop has a volume of 125,000 black-and-white copies per month. Two salespeople have made presentations
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Bagot Copy Shop has a volume of 125,000 black-and-white copies per month. Two salespeople have made presentations to Gordon Bagot for machines of equal quality and reliability.
The Print Shop 5 has a cost of $2,000 per month and a variable cost of $.03. The other machine (a Speed Copy 100) will cost only $1,500 per month, but the toner is more expensive, driving the cost per copy up to $.035. If cost and volume are the only considerations, which machine should Bagot purchase?
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Related Book For
Operations Management: Sustainability And Supply Chain Management
ISBN: 9780135225899,9780135202722
13th Edition
Authors: Jay Heizer; Barry Render; Chuck Munson
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