A graphic design studio is considering three new computers. The first model, A, costs $5000. Model B and C cost $3000 and $1000 respectively. Each customer provides $50 of revenue and variable costs are $20/customer. a) What is the number of customers required for each model to break even? b) What is the break-even point in dollars?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter4: Linear Programming Models
Section4.8: Data Envelopment Analysis (dea)
Problem 42P
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A graphic design studio is considering three new computers. The first model, A, costs $5000. Model B and C cost $3000 and $1000 respectively. Each customer provides $50 of revenue and variable costs are $20/customer.
a) What is the number of customers required for each model to break even?
b) What is the break-even point in dollars?

 

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