Question: Problem 3 A sales rep for the vendor selling the grinding machines has submitted bids for new machines. Although the price for the standard 2,500

Problem 3 A sales rep for the vendor selling the grinding machines has submitted bids for new machines. Although the price for the standard 2,500 lens unit is $50,000 dollars, the vendor is touting their new high capacity, 5,000 lenses/year, machine which sells for $120,000. In addition to more bells and whistles, the bigger machine lowers the cost of grinding the lenses from $20/lens to $17.5/lenses while EAs estimates the average selling price of the lenses to be $150/lens. a. o Based on information in the prior problem, what is the breakeven point in units for both options (using two 2,500 lens machines or a 5.000 lens machine)? Based on information in the prior problem, what is the breakeven point in dollars for both options (using two 2,500 lens machines or a 5.000 lens machine)? If the total demand satisfied by the new capacity (one big machine or two small machines) over the next five years, 2020-2024. is 5,000 lenses, what is the profitability of each of the options? Which option would you recommend, and why, if it was your business
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