Question
Taylor' Swifty Cleaners is considering adding coin-operated dry cleaning machines. Taylorestimates that one hundred customers would use each machine each day. If she buys one
Taylor' Swifty Cleaners is considering adding coin-operated dry cleaning machines. Taylorestimates that one hundred customers would use each machine each day. If she buys one machine, she will pay a daily fixed cost of$2,100 If she buys two machines, she will pay a dailyfixed cost of $3,800.Each customer would incur a variable cost of $20, and for each customer, Taylorwould receive$45 in revenue.
a.a.What is break-even point if Taylor buys 1 machine? If she buys 2 machines?(Round to the next whole number.).
Taylorhas forecast daily demand to be between 90 and 120 customers. Should she purchase one machine or two?
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