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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
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