quantitative analysis

question 25 and 26

1-25 Zoe Garcia is the manager of a small office-support business that supplies copying, binding, and other services for local companies. Zoe must replace a worn-out copy machine that is used for black-andwhite copying. Two machines are being considered, and each of these has a monthly lease cost plus a cost for each page that is copied. Machine 1 has a monthly lease cost of $600, and there is a cost of $0.010 per page copied. Machine 2 has a monthly lease cost of $400, and there is a cost of $0.015 per page copied. Customers are charged $0.05 per page for copies. (a) What is the break-even point for each machine? (b) If Zoe expects to make 10,000 copies per month, what would be the cost for each machine? (c) If Zoe expects to make 30,000 copies per month, what would be the cost for each machine? (d) At what volume (the number of copies) would the two machines have the same monthly cost? What would the total revenue be for this number of copies? 1-26 Bismarck Manufacturing intends to increase capacity through the addition of new equipment. Two vendors have presented proposals. The fixed cost for proposal A is $65,000 and for proposal B, \$34,000. The variable cost for A is $10 and for B,$14. The revenue generated by each unit is $18. (a) What is the break-even point for each proposal? (b) If the expected volume is 8,300 units, which alternative should be chosen