Question
A drug store operates an in-store printing service for customers with digital cameras. The current service, which requires employees to download photos from customer cameras,
A drug store operates an in-store printing service for customers with digital cameras. The current service, which requires employees to download photos from customer cameras, has monthly operating costs of $7,500 plus $0.10 per photo printed. Management is considering the acquisition of a machine that allows customers to download and make prints without employee assistance. If the machine is acquired, monthly fixed costs will increase to $11,000 and the variable cost per photo will decrease to $0.04 per photo.
Determine the total costs of printing 50,000 and 75,000 photos per month using the employee-assisted process and the self-service process
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