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The following are cost data for three alternative ways of processing the clerical work for cases brought before the LC Court System: C Fully- A
The following are cost data for three alternative ways of processing the clerical work for cases brought before the LC Court System: C Fully- A Manual () B Semi- Automatic (3) Automatic () Monthly fixed costs: Occupancy Maintenance contract 15,000 15,000 5,000 15,000 10,000 Equipment lease 1,00,000 Unit variable costs (per 20 report): Supplies 40 80 20 Labour $200 (5 hrs 60 (1 hr *20 (0.25 hr * x340) 360) 380) Required 0) Calculate cost indifference points. Interpret your results. (1) If the present case load is 600 cases and it is expected to go up to 850 cases in near future, which method is most appropriate on cost considerations
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