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Suppose the Service reduces its personnel costs to $100,000 per year and the per sample cost to $20. What will this do to the breakeven point? (Hint: Again, look carefully at your graph from the pre- vious problem before answering.) What is the new annual breakeven test quantity?

per hour. Machine 2 costs $70,000, has a life of 6 years, an annual cost of $2500, and requires two operators at a cost of $24 per hour each. It can process 6 tons per hour.

a. Determine the breakeven tonnage of scrap metal at i = 7% per year and select the better machine for a processing level of 1000 tons per year.

b. Calculate and plot the sensitivity of the break- even tons per year to ±15% change in the hourly cost of an operator.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91720202

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