Determine the break-even point for two machines

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1. John from One Source Credit is trying to decide how many machines to buy. Each machine can process 300 customers per day. One machine will have total fixed costs of $3,100 per day, two machines will have total fixed costs of $5,900 per day. Variable costs are $40 per customer, revenue will be $75 per customer..

i. Determine the break-even point for one machine.

a. 89 Customers per Day

b. 98 Customers per Day

c. 78 Customers per Day

ii. Determine the break-even point for two machines.

a. 916 Customers per Day

b. 89 Customers per Day

c. 169 Customers per day

iii. If estimated demand is between 125-150 customers per day, how many machines should John buy?

a. One Machine

b. Two Machines

Reference no: EM131472738

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