IVI X-Over Point 2 3 I am trying to decide whether to purchase an inkjet printer or a laserjet printer for home use. For an Inkjet, I can purchase a HP Envy 5055 for $80 from Best Buy. For a laserjet, I like the Brother HL-L5100 which goes for $150 from Staples. Now printing cost are different for the two options. Ink cost for a laserjet costs about $.02 per page to print, while an inkjet will cost about $. 10 per page for ink. Paper for each printer is $.015 per page and 4 electricity is $.05 per page. Due to special maintenance needs, the inkjet incurs a cost of $.005 per page. A) For my printer problem, determine the cross-over point (pages) for the two options, and B) Briefly 5 explain what I should do if COST is my only concern. 6 Cells require a calulation formula. 7 Cells may require an input 8 9 10 Inkjet Printer Laser Printer 11 Break-even BEP = F/(P-V) BEP - Break-even point Profit at volume Prof = (P-V)*Q-F F - Fixed cost V-Variable cost per unit 12 13 Required volume for given profit Q=(Prof+F)/(P-V) Profit- Q- Quantity Sold Point of Indifference X-Over Point (F2-F1)/(V1-12) per page per page per page per page Total Cost =F+V*Qor F+V*X (We are using Xas our target quantity (or Q). It is the quantity at which total costs for two options are equal. 14 15 16 Total Fixed Cost Total Fixed Cost 17 18 per page 19 per page 20 per page 21 per page Total Variable Cost Total Variable Cost 23 24 25 Volume Pages Inkjet Cost Laserjet Cost 26 20 100 27 2 200 28 20 300 su 29 29 400 30 500 we 31 21 600 w 32 700 32 33 32 ou 800 34 + 900 33 35 1000 36 30 1500 37 38 39 At what volume will both Locations have the same cost (x-over point)? X-Over = (F2 40 F1)/(V1-V2) 41 42 What should I purchase: 43 Plot the total costs for the two alternatives showing the crossover point below. The X-over video should be helpful and the chart shown in this video is what your chart should look like but with different numbers