Find out the break-even point for each range

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Q. A manager must decide explain how many machines of a certain type to purchase. Each machine can process 100 customers per hour. One machine will result in a fixed cost of $2,000 per day while two machines will result in a fixed cost of $3,800 per day. Variable costs will be $20 per customer; also revenue will be $45 per customer.

a. Find out the break-even point for each range. 80,152

b. If estimated demand is 90 to 120 customers per hour, explain how many machines should be purchased?

Reference no: EM1377891

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