Two automatic systems for dispensing maps are being compared by the state highway department. The accompanying breakeven
Question:
(a) What is the fixed cost for System I?
(b) What is the fixed cost for System II?
(c) What is the variable cost per map dispensed for System I? ,
(d) What is the variable cost per map dispensed for System II?
(e) What is the breakeven point in terms of maps dispensed at which the two systems have equal annual costs?
(f) For what range of annual number of maps dispensed is System I recommended?
(g) For what range of annual number of maps dispensed is System IT recommended?
(h) At 3000mapsper year, what are the marginal and average map costs for each system?
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Related Book For
Engineering Economic Analysis
ISBN: 9780195168075
9th Edition
Authors: Donald Newnan, Ted Eschanbach, Jerome Lavelle
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