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Q4. A print shop owner in Sault Ste. Marie, Ontario has two printing machines that can do the same printing operation. Machine B, which is
Q4. A print shop owner in Sault Ste. Marie, Ontario has two printing machines that can do the same printing operation. Machine B, which is designed for high volume production, has a larger initial setup cost but lower per-unit variable costs. Printer A Set Up Costs $8.00 $80 Variable Cost per Unit $0.24 $0.09 B The owner wants to determine which printer to schedule to minimize total costs when a print job order arrives for assignment to print production operations. a. Determine the total cost equation for each printer b. Plot the two equations on one graph c. At what volume do printers A and B have the same total cost? d. What decision rule should the manager use when determining which printer to use for a particular job requiring print production
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