Question: Quincy's Quik Print is looking at adding two new high-volume full-colour printers that will increase fixed costs by $75 000, including the annual equivalent cost
Quincy's Quik Print is looking at adding two new high-volume full-colour printers that will increase fixed costs by $75 000, including the annual equivalent cost of the capital investment and additional overhead, such as the salary of one more technician.
Each new order that will be scheduled on these printers will be expected to have revenues of $90, with variable costs estimated at $50 per order. The two new printers will allow Quincy to expand his business by as many as 5000 orders annually. How many orders would have to be added for the new process to break even?
Step by Step Solution
3.59 Rating (163 Votes )
There are 3 Steps involved in it
Assume that the new orders refers to 90 in incremental revenue per order that wou... View full answer
Get step-by-step solutions from verified subject matter experts
Document Format (1 attachment)
1127-B-M-L-O-M(6048).docx
120 KBs Word File
