A manager must decide how many machines of a certain type to purchase. Each machine can process 100 customers per day. Onemachine will result in a fixed cost of $2,100 per day, while two machines will result in a fixed cost of $3,900 per day. Variable costs willbe $17 per customer, and revenue will be $45 per customer.a. Determine the break-even point for each range. (Round your answers to the next whole number.)One machineTwo machines4,500b. If estimated demand is 90 to 120 customers per day, how many machines should be purchased?

The objective of the question is to determine the break-even point for each range of machines and to…

Answered: A manager must decide how many machines…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter5: Network Models

Section5.3: Assignment Models

Problem 12P

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A manager must decide how many machines of a certain type to purchase. Each machine can process 100 customers per day. 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, and revenue will be $45 per customer.a. Determine the break-even point for each range.b. If estimated demand is 90 to 120 customers per day, how many machines should be purchased?
A manager must decide how many machines of a certain type to purchase. Each machine can process 100 customers per day. One machine will result in a fixed cost of $2,000 per day, while twomachines will result in a fixed cost of $3,800 per day. Variable costs will be $20 per customer, andrevenue will be $45 per customer.a. Determine the break-even point for each range
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