Question
a). Calculate the volume level in copies where FastQ Company would be indifferent to acquiring either the small - volume model laser copier, 1024S, or
a). Calculate the volume level in copies where FastQ Company would be indifferent to acquiring either the small - volume model laser copier, 1024S, or the medium-volume model laser copier, 1024M.
Answer: FastQ Company would be indifferent to acquiring either the 1024S or 1024M, at the point the costs for the 1024S and 1024M are equal. It can be calculated using the following formula, where X equal number of copies:
Assume the volume = X Small copier = Medium copier Xs (Variable Costs) + Fixed Costs = Xm (Variable Costm) + Fixed Costm 0.14X + 8,000 = 0.09X + 11,000 0.05X = 3,000 X = 60,000
I understand how they got up to the point of 0.05x=3,000 but what math was used to get the x=60,000
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