FastQ company, a specialist in printing, has established 500 convenience copying centers throughtout the country

Subject:AccountingPrice:2.87 Bought7

Share With

FastQ company, a specialist in printing, has established 500 convenience copying centers throughtout the country. In order to upgrade its services, the company is considering 3 new models of laser copying machines for use in producing high quality copies. The HQ copies would be added to the growing list of products offered in the shops. The selling price to the customer for each laser copy would be the same, no matter which machine is installed. The 3 models of laser machines under consideration are 1024S, small-volume model, 1024m, medium-volume model, and 1024g, lg vol model. The annual rentals costs vary with each machine the machine capacities are 1024s 1024m 1024g Ann. capacity 100,000 350,000 800,000 ann machine rent 8,000 11,000 20,000 direct mat& lbr .02 .02 .02 var. overhd costs .12 .07 .03 Calculate the vol. level where Fast Q would be indifferent to acquiring the small, medium or large laser copier? Present a decision rule to enable FQ to select the most profitable machine w/out having to make a sepate cost calc for each establishment?