contestada

bartell’s, a seattle drug store operates an in-store printing service for customers with digital cameras. the current service, which requires employees to download photos from customer cameras, has monthly operating costs of $5,500 plus $0.15 per photo printed. management is evaluating the desirability of acquiring a machine that will allow customers to download and make prints without employee assistance. if the machine is acquired, the monthly fixed costs will increase to $7,000 and the variable costs of printing a photo will decline to $0.05 per photo. what is the total cost of printing 25,000 copies with the proposed customer self-service process?

Respuesta :

khuranashilpa76

The definition of self-service. Self-service is an approach where users access resources to find solutions on their own without requiring assistance from a service representative.

(1) total cost for 10k photos = fixed costs + variable costs = 5500 + 0.15 * 10000 = 5500+ 1500 = 7000

total cost for 25k photos = fixed costs + variable costs = 5500 + 0.15 * 25000 = 5500 + 3750 = 9250

a.(2) total cost for 10k photos = fixed costs + variable costs = 7000 + 0.05 * 10000 =7000+ 500 = 7500

total cost for 25k photos = fixed costs + variable costs =7000 + 0.05 * 25000 = 7000 + 1250 = 8250

b. For this, we first find the volume at which both processes cost the same.

let the required volume be x.

So, 5500 + 0.15x = 7000 + 0.05x

=> 0.15x - 0.05x = 7000 - 5500

=> 0.1x = 1500

=> x = 1500/0.1 = 15,000

So,  at the monthly volume of 15,001 photos and above, the proposed process becomes preferable.

Learn more about self-service here

https://brainly.com/question/15128976

#SPJ4

Otras preguntas