Chapter 19 Self-Study Questions

1.Plan one: Cost = $0.75 * Copies

Plan two: Cost = $600 + $0.25 * Copies

2.

3.Plan two: Cost = $600 + 0.25 * 2,500 = $1225
4.Plan one: Plan three

$0.75 * Copies = $1000 + $0.15 * Copies

$0.60 * Copies = $1000

Copies = 1,667

Plan Two: Plan Three

$600 + $0.25 * Copies = $1000 + $0.15 * Copies

$0.10 * Copies = $400

Copies = 4,000

5.Stay with plan two, it's cheaper than plan three at 2,500 copies. Plan three is only the best at more than 4,000 copies.
6.The plan one-plan three break-even point is 1,667 copies (from Question 4). At 1,667 copies, the price under plan one and plan three is $1250.25. At 1,667 copies, the price ...

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