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Author Question: A firm is considering adding a second secretary to answer phone calls and make appointments. The ... (Read 114 times)

mwit1967

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Question 1

A graphic design studio is considering three new computers. The first model, A, costs $5000. Model B and C cost $3000 and $1000 respectively. If each customer provides $50 of revenue and variable costs are $20/customer, find the number of customers required for each model to break even.

Question 2

A firm is considering adding a second secretary to answer phone calls and make appointments. The cost of the secretary will be $10/hour and she will work 200 hours each month. If each new client adds $400 of profit to the firm, how many clients must the secretary arrange for the firm to break even? Suppose that the secretary has an equal chance of providing either 0, 2, or 6 new clients each month. Should the firm hire the secretary?


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Marked as best answer by mwit1967 on Dec 3, 2019

scrocafella

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mwit1967

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Reply 2 on: Dec 3, 2019
Thanks for the timely response, appreciate it


dreamfighter72

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Reply 3 on: Yesterday
Wow, this really help

 

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