Question
Can you help me with the following question ( point B below) ? Photo Station Company operates a printing service for customers with digital cameras.
Can you help me with the following question ( point B below) ?
Photo Station Company operates a printing service for customers with digital cameras. The current service, which requires employees to download photos from customer cameras, has monthly operating costs of $7,000 plus $0.20 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 $12,000 and the variable costs of printing a photo will decline to $0.04 per photo.
20,000 | $11000 | $12,800 |
50,000 | $17000 | $ 14000 |
(b) Determine the monthly volume at which the proposed process becomes preferable to the current process.
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