Question: indiff Problem-11 The following are cost data for three alternative ways of processing the clerical work for cases brought before the LC Court System:

indiff Problem-11 The following are cost data for three alternative ways of

indiff Problem-11 The following are cost data for three alternative ways of processing the clerical work for cases brought before the LC Court System: A B C Manual () Semi-Automatic (3) Fully-Automatic () Monthly fixed costs: Occupancy 15,000 15,000 15,000 Maintenance contract 5,000 10,000 Equipment lease 25,000 1,00,000 Unit variable costs (per report): Supplies Labour Required (i) (ii) 40 80 20 200 60 20 (5 hrs x40) (1 hr x260) (0.25 hrx80) Calculate cost indifference points. Interpret your results. If the present case load is 600 cases and it is expected to go up to 850 cases in near future, which method is most appropriate on cost considerations?

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