Question: Break Even Analysis You are considering opening a copy service in the student union. You need to decide which one of the two copy machines

 Break Even Analysis You are considering opening a copy service in

Break Even Analysis You are considering opening a copy service in the student union. You need to decide which one of the two copy machines you want to buy. Machine A has a fixed cost of $15,000 and the variable cost of each copy sold at $0.01. Machine B has a fixed cost of $9,000 and the variable cost of $0.02 for each copy sold. You expect the selling price to average $0.05. a) What is the break-even point for Machine A in units? In dollars? b) What is the break-even point for Machine B in units? In dollars? c) At what volume would the two machines yield the same profit? What is the profit? (Note: This volume is referred to as the "crossover point") d) If the volume is 800,000 copies, which machine would you buy? What is the profit per copy

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