Question
Angela purchased a new printing machine and started a small printing shop. As per his calculations, to earn revenue of $6,000 per month, he needs
Angela purchased a new printing machine and started a small printing shop. As per his calculations, to earn revenue of $6,000 per month, he needs to sell printouts of 24,000 sheets per month.?
The printing machine has a capacity of printing 38,100 sheets per month, the variable costs are $0.03 per sheet, and the fixed costs are $2,400 per month.?
a. Calculate the selling price of each printout. (Round to the nearest cent)?
b. If they reduce fixed costs by $440 per month, calculate the new break-even volume per month. (Round up to the next whole number)?
c. Calculate the new break-even volume as a percent of capacity. (Round to two decimal places)?
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Get StartedRecommended Textbook for
Fundamentals of Engineering Economics
Authors: Chan S. Park
3rd edition
132775425, 132775427, 978-0132775427
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