Benny is the manager of an office-support business that supplies copying, binding, and otherservices for local companies. He must replace a worn-out copy machine that is used for black-and-white copying. He is considering two machines, and each of these has a monthly leasecost plus a cost for each page that is copied.Machine 1 has a monthly lease cost of $639, and there is a cost of $0.030 per page copied.Machine 2 has a monthly lease cost of $747, and there is a cost of $0.045 per page copied.Customers are charged $.08 per page copied.a. What is the break-even point for each machine?b. If Benny expects to make 75,000 copies per month, what would be the monthly cost foreach machine?(round your answers to the highest whole number)

The objective of this question is to calculate the break-even point for each machine and the monthly…

Answered: Benny is the manager of an…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter12: Queueing Models

Section: Chapter Questions

Problem 59P

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A fully leased three-story suburban office building near Disneyworld had a total of 60,000 rentable square feet. Each of the three floors had an identical layout with two public bathrooms, an elevator lobby, and a public hallway that yielded a load factor per floor of 1.20. The lease form used for the building was written so that rent was paid by the tenants per usable square foot of rented floor space. If the total annual rental income for the building was $1.8 million, what was the monthly rent per usable square foot? a. $3.00 b. $3.60 c. $2.00 d. $2.40
A company has the following demand data for the last three years of sales for their popular product B. There are currently 5 workers assigned to the production line, each capable of producing approximately 8 units per month. It is assumed that each month has the same number of production days. They can hire more workers at a hiring and training cost of $800 per worker. If they layoff any workers, the unemployment cost is $2,000 per worker. The product has a standard production cost (labor, material, and overhead) of $300 per unit. The extra cost to produce one unit on overtime is $50 and the maximum overtime is two units per month per worker. They can use inventory but it will cost them $25 per unit per month for any unit in inventory at the end of the month. Failure to meet market demand typically will imply the customer will buy from another supplier, and therefore cost the company $100 in profit. They currently have 0 units in inventory. a. Use the demand data to develop a forecast…
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A company offers ID theft protection using leads obtained from client banks. Three employeeswork 40 hours a week on the leads, at a pay rate of $25 per hour per employee. Each employeeidentifies an average of 3,000 potential leads a week from a list of 5,000. An average of 4 percentactually sign up for the service, paying a one-time fee of $70. Material costs are $1,000 per week,and overhead costs are $9,000 per week. Calculate the multifactor productivity for this operation infees generated per dollar of input.
In an attempt to have funds for a down payment, Carmella Carlson plans to save $3,850 a year for the next five years. With an interest rate of 5 percent, what amount will Carmella have available for a down payment after the five years? (Exhibit 1-A,Exhibit 1-B, Exhibit 1-C, Exhibit 1-D)

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