Self-Study Questions
| 1. | CDs Plus is one of many companies that offer CD-ROM duplication services. They currently have two different pricing plans. With Plan 1, the customer pays a flat charge of $0.75 per copy with no setup charge. Under Plan 2, the customer pays $0.25 per copy, but there is a setup charge of $600. Write the cost functions for Plan 1 and Plan 2. |
| 2. | ABC Software needs to make copies of the CD for the latest release of a software product and CDs Plus is a leading candidate to do the work. What is the break-even point between the two pricing plans? |
| 3. | If ABC Software needs 2,500 copies, which plan should they go with and how much would it cost them? |
| 4. | Suppose that CDs Plus announces a new pricing plan, Plan 3. With Plan 3, the setup charge ... |
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