What is break-even point if taylor buys 1 machine

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Taylor' Swifty Cleaners is considering adding coin-operated dry cleaning machines. Taylor estimates that one hundred customers would use each machine each day. If she buys one machine, she will pay a daily fixed cost of  $2,200 If she buys two machines, she will pay a daily fixed cost of $3,700. Each customer would incur a variable cost of $20, and for each customer, Taylor would receive $45 in revenue.

a. What is break-even point if Taylor buys 1 machine? If she buys 2 machines? (Round to the next whole number.).

One machine Two machines

b. Taylor has forecast daily demand to be between 90 and 120 customers. Should she purchase one machine or two?

Reference no: EM131669410

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