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Business, 19.09.2019 16:20 Slytherinsarethebest

Alast-mile delivery service is looking into increasing capacity by purchasing new delivery vans. two vans are being considered. van a costs $50,000 with a variable cost of $12.00 per average delivery, all inclusive of gasoline insurance, etc. van b costs $70,000 with a variable cost of $11.00 per average delivery. the company is also considering a courier service which requires a $60,000 non-refundable joiner fee and a variable cost of $13.00 per average delivery. last but not least the company is also considering a new drone delivery option that requires an investment in infrastructure of $100,000 and a delivery cost of $15.00 per delivery, but costs are expected to drop sharply in the foreseeable future. a. what of the following is not true? select in the long run, option b with its $11.00 variable cost is the best option the drone option should be chosen because it is the least expensive in terms of both fixed and variable cost. option a requires the smallest initial cash outlay, followed by using the courier service, followed by option b. there is no point of indifference/break even between option a and using the courier service b. volumes above. select ] is preferred at volumes below while is preferred at b and 30,000, a and 20,000 b and 5,000, c and 5,000 c is always preferred to a at every volume a and 20,000, b and 20,000 c. if the average sales revenue generated by the delivery service $15.00 per delivery, but customers are willing to pay $20.00 for the novelty of drone delivery, what is the breakeven in units for each option? select ] 16,667 for option a and 20,000 for drone option option a and drone delivery do not crossover 20,000 for option a and 16,667 for drone option option a is always better than drone delivery

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