Question: Based upon initial study and negotiations, DataEase will charge $ 0 . 0 3 more per transaction than BlueFin's cost per transaction, and DataEase will

Based upon initial study and negotiations, DataEase will charge $0.03 more per transaction than BlueFin's cost per transaction, and DataEase will want $6 million per year to cover equipment and overhead costs associated with the contract. BlueFin has yet to develop an estimate for the annual overhead and fixed costs associated with processing the transactions. These costs include supervision, administrative support, maintenance, equipment depreciation, and overhead.
If BlueFin must process 21 million transactions per year, how high must those fixed costs be before it would pay to use DataEase?

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