kindky do question 2

1. (10 marks) Using existing technology, a vaccine costs $25 per vaccination. How- ever, two new competing technologies would lower the per-unit cost, but each tech- nology incurs a one-time cost of development. (1) Procedure I would have an upfront cost of $35,000, and there would be a vari- able cost of $10 per vaccination (2) Procedure 2 would have an upfront cost of $90,000, and there would be a vari- able cost of SS per vaccination (a) What is the break-even point (BEP) for Procedure 1? (b) What is the BEP for Procedure 2? (e) At 10.000 vaccinations, what is the total cost for () Procedure ! (m) Procedure 2? (d) At 20.000 vaccinations, what is the average cost per vaccination for (i) Proce- dure I (ii) Procedure 2? (e) At what number of vaccinations would both technologies cost the same? 2. (15 marks) Natasha is considering two mobile phone plans. Plan I would cost $30 and would give her 800 minutes of free local calls. Extra local calls, and any long- distance calls would cost $0.40 per minute. Plan 2 would cost $50, and there would be 1200 minutes of local or long-distance minutes, over this limit calls would cost $0.40 per minute. Suppose that she wishes to make a minutes of local calls and minutes of long-distance calls. (a) Using the MAX function, write expressions for the total cost of each Plan in terms of a and b. (b) If a = 1100, and b = 100, find the cost of cach Plan. (c) For a+b = 1200. find the values for a and b that would make Plan I better (i.c. cheaper than Plan 2 (d) Based on the solution for (c). show the region (sce page 5) where Plan I is better than Plan 2. For question 2. 200 b 0 0 200 400 600 800 1000 1200 a