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Bartell's, a Seattle drug store operates an in- store printing service for customers with digital cameras. The current service, which requires employees to download
Bartell's, a Seattle 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 $6,000 plus $0.15 per photo printed. Management is evaluating the desirability of acquiring a machine that will allow customers to download and make prints without employee assistance. If the machine is acquired, the monthly fixed costs will increase to $8,500 and the variable costs of printing a photo will decline to $0.05 per photo. At what monthly volume will the proposed process be preferable to the current process? a. 25,000 b. 10,000 c. 15,000 d. 35,000
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