| Printer Selection |
| X-Over Point |
| I am trying to decide whether to purchase an inkjet printer or a laserjet printer for home use. For an Inkjet, I can purchase a HP Envy 5055 for $60 from Best Buy. For a laserjet, I like the Brother HL-L5100 which goes for $130 from Staples. Now printing cost are different for the two options. Due to ink cost, a laserjet costs about $.04 per page to print, while an inkjet will cost about 12 cents per page. |
| A) For my printer problem, determine the cross-over point (pages) for the two options, and B) Briefly explain what I should do if COST is my only concern. |
| | | | | | | | | | Break-even |
| | | | | | | | | | BEP = F/(P-V) | BEP - Break-even point |
| | Inkjet Printer | | | | Laser Printer | | | | Profit at volume | F - Fixed cost |
| | | | | | | | | | Prof = (P-V)*Q - F | V - Variable cost per unit |
| | | | | | | | | | Required volume for given profit |
| | | | | | | | | | Q = (Prof + F)/(P-V) | Profit - |
| | | | | | | | | | | Q - Quantity Sold |
| Total Fixed Cost | | | | Total Fixed Cost |
| | | | | | | | | | X-Over Point | Point of Indifference |
| | | | | | | | | | (F2-F1)/(V1-V2) |
| | | per page | | | | per page |
| | | per page | | | | per page |
| | | per page | | | | per page |
| Total Variable Cost | | | | Total Variable Cost |
| Volume Pages | Inkjet Cost | Laserjet Cost |
| 100 |
| 200 |
| 300 |
| 400 |
| 500 |
| 600 |
| 700 |
| 800 |
| 900 |
| 1000 |
| 1500 |
| At what volume will both Locations have the same cost (x-over point)? |
| X-Over = (F2-F1)/(V1-V2) |
| What should I purchase: |
Tifa99
X-OverPrinterSelectionStudent.xlsx
