| 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 $80 from Best Buy. For a laserjet, I like the Brother HL-L5100 which goes for $150 from Staples. Now printing cost are different for the two options. Ink cost for a laserjet costs about $.02 per page to print, while an inkjet will cost about $.10 per page for ink. Paper for each printer is $.015 per page and electricity is $.05 per page. Due to special maintenance needs, the inkjet incurs a cost of $.005 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. |
|
|
|
|
Cells require a calulation formula. |
|
|
|
|
Cells may require an input |
|
|
|
|
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 |
|
|
per page |
|
|
|
per page |
|
|
(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 |
|
|
|
|
|
|
Total Cost = F + V*Q or F + V*X |
| 100 |
|
|
|
|
|
|
|
|
(We are using X as our target quantity (or Q). It is the quantity at which total costs for two options are equal. |
| 200 |
| 300 |
|
|
|
|
|
|
|
|
Plot the total costs for the two alternatives showing the crossover point below. |
| 400 |
|
|
|
|
|
|
|
|
The X-over video should be helpful and the chart shown in this video is what your chart should look like but with different numbers |
| 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: |
24/7 online - 
1-316-444-1378 or 44-141-628-6690
Login
March 21st, 2022 
Posted in