Kleber Enterprises would like to evaluate three accounting software products (A, B, and C) to support changes in its internal accounting processes. The resulting processes will have cost structures similar to those shown in Figure 7.3. The costs of the software for these processes are:

APPROACH c Solve for the crossover point for software A and B and then the crossover point for software B and C.

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Software A Software B Software C TOTAL FIXED COST $200,000 $300,000 $400,000 DOLLARS REQUIRED PER ACCOUNTING REPORT $60 $25 $10