Question: Printer Selection X-Over Point I am trying to decide whether to purchase an inkjet printer or a laserjet printer for home use. For an Inkjet,

Printer Selection X-Over Point 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 Inkjet Printer Laser Printer Profit at volume F - Fixed cost Prof = (P-V)*Q - F V - Variable cost per unit Required volume for given profit Q = (Prof + F)/(P-V) Profit - Q - Quantity Sold Total Fixed Cost Total Fixed Cost X-Over Point Point of Indifference (F2-F1)/(V1-V2) per page per page per page per page per page per page Total Variable Cost Total Variable Cost Volume Pages Inkjet Cost Laserjet Cost 100 200 300 400 500 600 700 800 900 1000 1500 At what volume will both Locations have the same cost (x-over point)? X-Over = (F2-F1)/(V1-V2) What should I purchase:

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!