Question 4 Jacee is investigating options to purify her water. She currently purchases the water by...

 

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Question 4 Jacee is investigating options to purify her water. She currently purchases the water by the tanker already purified (outsourced). She thinks buying the tanker of water, unpurified, and then completing purification in-house may be a more cost effective option. The outsourced option has an annual fixed cost of $0 and a variable cost of $9,000/tanker. In- house the fixed cost will be $100,000 and variable cost of $5,000/tanker. Revenue per tanker is $10,000 4.1 At what volume, in number of tankers, would both options yield the same profit? (25 points) Question 4 Jacee is investigating options to purify her water. She currently purchases the water by the tanker already purified (outsourced). She thinks buying the tanker of water, unpurified, and then completing purification in-house may be a more cost effective option. The outsourced option has an annual fixed cost of $0 and a variable cost of $9,000/tanker. In- house the fixed cost will be $100,000 and variable cost of $5,000/tanker. Revenue per tanker is $10,000 4.1 At what volume, in number of tankers, would both options yield the same profit? (25 points)

Answer rating: 100% (QA)

To determine the volume in terms of the number of tankers at which both options yield the same profi... View the full answer