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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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