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Gallant Carpet Cleaning cannot meet demand with its current equipment. Gal- lant Carpet Cleaning is considering two new carpet cleaning machines. Machine A cleans carpets to residential standards, while machine B cleans and sanitizes carpets to hospital standards. Machine A costs $20,000 and machine B costs $50,000. The company estimates its cost per cleaning (including all chemicals) for machine A will be $8 and machine B will be $7. The revenue per carpet cleaned for A would be $40, while B could bring in $45 per carpet, due to the higher degree of sanitation pro- vided. Machine B needs to clean how many more carpets than machine A to break even?

Gallant Carpet Cleaning cannot meet demand with its current equipment. Gal- lant Carpet Cleaning is considering two new carpet cleaning machines. Machine A cleans carpets to residential standards, while machine B cleans and sanitizes carpets to hospital standards. Machine A costs $20,000 and machine B costs $50,000. The company estimates its cost per cleaning (including all chemicals) for machine A will be $8 and machine B will be $7. The revenue per carpet cleaned for A would be $40, while B could bring in $45 per carpet, due to the higher degree of sanitation pro- vided. Machine B needs to clean how many more carpets than machine A to break even?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Gallant Carpet Cleaning cannot meet demand with its current equipment. Gal- lant Carpet Cleaning is considering two new carpet cleaning machines. Machine A cleans carpets to residential standards, while machine B cleans and sanitizes carpets to hospital standards. Machine A costs $20,000 and machine B costs $50,000. The company estimates its cost per cleaning (including all chemicals) for machine A will be $8 and machine B will be $7. The revenue per carpet cleaned for A would be $40, while B could bring in $45 per carpet, due to the higher degree of sanitation pro- vided. Machine B needs to clean how many more carpets than machine A to break even?
Transcribed Image Text:Gallant Carpet Cleaning cannot meet demand with its current equipment. Gal- lant Carpet Cleaning is considering two new carpet cleaning machines. Machine A cleans carpets to residential standards, while machine B cleans and sanitizes carpets to hospital standards. Machine A costs $20,000 and machine B costs $50,000. The company estimates its cost per cleaning (including all chemicals) for machine A will be $8 and machine B will be $7. The revenue per carpet cleaned for A would be $40, while B could bring in $45 per carpet, due to the higher degree of sanitation pro- vided. Machine B needs to clean how many more carpets than machine A to break even?
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