A B D E F G H I 1 J L M N 0 I am trying to decide whether to purchase an inkjet printer or a laserjet printer for home use. For an Inkjet, I can purchase a HP Envy 5055 for $60 from Best Buy. For a laserjet, I like the Brother HL-L5100 which goes for $130 from Staples. Now printing cost are different for the two options. Due to ink cost, a laserjet costs about $.04 per page to print, while an inkjet will cost about 12 cents per page. A) For my printer problem, determine the cross-over point (pages) for the two options, and B) Briefly explain what I should do if COST is my only concern. Break-even BEP = F/(P-V) BEP - Break-even point 1 Inkjet Printer Laser Printer Profit at volume Prof=(P-V)*Q-F F- Fixed cost V-Variable cost per unit - Required volume for given profit Q = (Prof+FW/(P-V) - - Profit 0 - Quantity Sold Total Fixed Cost Total Fixed Cost Point of Indifference X-Over Point (F2-F1/(V1-12) 1 per page per page per page per page per page per page Total Variable Cost 2 Total Variable Cost 3 5 5 Total Cost =F+V+Qor F+V*X (We are using X as our target quantity (or Q). It is the quantity at which total costs for two options are equal. 7 Volume Pages Inkjet Cost Laserjet Cost 100 200 200 300 we 400 Plot the total costs for the two alternatives showing the crossover point below. 3 a 3 - ] 2 500 600 2 3 1 + 2 700 800 900 1000 1500 7 3 At what volume will both Locations have the same cost (x-over point)? X-Over = (F2- F17/(V1-12) 9 2 What should I purchase 3