Business, 12.02.2020 03:56 samueldfhung

Two automatic systems for dispensing maps are being compared by the state highway department. The accompanying breakeven chart of the compar- ison of these systems (System I vs. System IT) shows 2-16 total yearly costs for the number of maps dispensed per year for both alternatives. Answer the following questions. (a) What is the fixed cost for System I? (b) What is the fixed cost for System II? (c) What is the variable cost per map dispensed for System I? (d) What is the variable cost per map dispensed for System 11? (e) What is the breakeven point in terms of maps dispensed at which the two systems have equal annual costs? For what range of annual number of maps dis- pensed is System I recommended? (8) For what range of annual number of maps dis- pensed is System II recommended? (h) At 3000 maps per year, what are the marginal 2-1 and average map costs for each system? $10 Total cost, System I: y- 0.90x+ 1.0 $6- Total cost, System Il: y=0.10x + 5.0 $4 5 Maps Dispensed per year (thousands) 10

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Two automatic systems for dispensing maps are being compared by the state highway department. The ac...

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