Question: 1)A graphic design studio is considering three new computers. The first model, A, costs $5000. Model B and C cost $3000 and $1000 respectively. Each

1)A graphic design studio is considering three new computers. The first model, A, costs $5000. Model B and C cost $3000 and $1000 respectively. Each customer provides $50 of revenue and variable costs are $20/customer.

a)What is the number of customers required for each model to break even?

b)What is the break-even point in dollars?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

QUESTION 4 A). Describe the differences among make-to-order, assemble-to-order, and make-to-stock strategies from the producer's and from the customer's perspective. B) Two manufacturing processes...

Answer Question 1)The staff training centre at a large regional hospital provides training sessions in CPR to all employees. Assume that the capacity of this training system was designed to be 2100...

A graphic design studio is considering three new computers. The first model, A, costs $5000. Model B and C cost $3000 and $1000 respectively. Each customer provides $50 of revenue and variable costs...

A digital design den is considering three new computers. The first Model, A, costs $12,000. Model B and C cost $9,000 and $6,000 respectively. If each customer provides $59 of revenue and variable...

A 3D Drawing firm is considering three new computers. The first Model, A costs $12,000. Model B and C cost $9,000 and $6,000 respectively. If each customer provides $59 of revenue and variable costs...

About Revitalizing Dell case study. Answer the following questions: What is their organizational structure? Who are the competitors? What is their position in the market? Who is the target market?...

According to the article listed below: Please do the following: 1) Introduction - Describe the case. What happened? When did that happen? Who got involved? 2) Identify the link between the case and...

Can I have all questions answered, please? You just started a summer internship with the successful management consulting firm of Kirk, Spock, and McCoy. Your first day on the job was a busy one, as...

2. Alderon Enterprises is evaluating a special order it has received for a ceramic fixture to be used in aircraft engines. Alderon has recently been operating at less than full capacity. so the...

You just started a summer internship with the successful management consulting firm of Brooks & Angelou, which specializes in social and environmental issues. Your first day on the job was a busy...

Let T and N be the tangent and normal lines to the ellipse x2/9 + y2/4 = 1 at any point P on the ellipse in the first quadrant. Let xT and yT be the - and -intercepts of T and xN and yN be the...

What would be the justified IPO valuation of Netscape given the following? show financial template and formula. Revenue Growth 50% Long term steady CF growth rate of 6% after 2005 Working capital...

12. The Hawaii Visitors Bureau collects data on visitors to Hawaii. The following questions were among 16 asked in a questionnaire handed out to passengers during incoming airline flights in June...

Fit-For-A-King Inc. manufactures foam products for several upholstery companies. This company has two workstations, mixing/heating and cutting/assembly. The mixing/heating station is limited by the...

Always have the dignity of the other or others as a backdrop.

1. There are two purposes in this chapter. The first is to break out of habits that have a limiting effect on ones own ability to change. Secondly, it is to understand how the cleaning affects the...