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Jonathan is considering opening a shop for online baseball memorabilia. He has two options. He can build the web site himself and only pay
Jonathan is considering opening a shop for online baseball memorabilia. He has two options. He can build the web site himself and only pay for hosting. This would cost him $2,000/year. The average item for sale is $3.98. Average costs associated with each sale are $3.00. His second option is to use an existing e-commerce service. This incurs an additional monthly cost of $15/month. The site takes a cut of his sales of $0.26/item, so he is planning on also increasing his prices by $0.52/item. The remaining costs stay the same. For what ranges of volume does he prefer which option? Select one: a. He prefers developing his own site for Q = 26 b. He prefers developing his own site for Q >= 27, using the e- commerce site for Q = 2564, using the e- commerce site for Q = 230, using the e- commerce site for Q
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