Question: Q 1 . Break - even ( 3 0 points ) Ali Bey is thinking of openning a small copy shop. He collects the following
Q Breakeven points
Ali Bey is thinking of openning a small copy shop. He collects the following information about this new business initiative; it costs $
to rent a copier machine per year, and other fixed costs to run the store rent electricity, stationary etc. will amount to per
month. Ali Bey also learned that it costs per page for the copying process and planning to sell this service for age to the
customers. The store will work days a year and the copier machines are garanttied to process upto pages a year. Note that Ali
Bey needs to hire one employee per mahine that he rents and the salary of an employee including all benefits is TLmonth
For simlicity assume $ is TL But you are strongly advised to model it such that when the exchange rate changes, the new res are
calculated automatically.
Then answer the following questions:
pt aAssume Ali Bey rented a single copier; Calculate the annual profit of this store if the daily demand is and pages of copies.
Provide a table for this, like:
pt b If Ali bey rents copiers in order to reduce the waiting lines what would be the daily demand so that this store just breaks even in one years operations?Ali bey has a small manufacturing firm at the Organize Sanayi. One of his customers asks him if he could make a new product, called zamazingo, for them. Ali bey thinks, he needs to buy an zamazingo machine for production. He could buy the machine from Germany, Expo Co Expo Co sells the machine for The current exchange rate is TL The machine uses advanced technology and its variable cost of producing zamazingo is not linear, but it is a function of yearly production. If the yearly production is Q units, then the per unit variable cost is LOGQ TL Note that the variable cost is in TL but the fixed cost is in s pt a What is the breakeven quantity for this new product line, if Ali bey buys the machine from Expo Co pt b If Ali bey thinks that he could sell only units next year, what would be the max TL exchange rate that the investment is still viable that is the breakeven quantity will be units
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