SOLVED

52) Kirstin is thinking about opening a Chinese restaurant and needs to buy a rice cooker. Machine A has fixed costs of $100 and variable costs of $1/pound. Machine B has fixed costs of $500 and variable costs of $.1/pound. If Kirstin plans to sell 100 pounds of rice, which machine should she choose? What is the cross-over point? 53) Bridget is considering how to get to work over the summer. She has two options. Option A is to buy a seasonal bus pass for $100. Option B is to pay $.25 for each ride. Identify the fixed and variable costs for each option. If she has to ride both to and from work, how many days of work would it take for the seasonal pass to cost the same amount as Option B? 54) Karla’s candle factory is considering two different manufacturing options. Option A is highly automated with fixed costs of $25,000 and variable costs of $.1/candle. Option B uses hand labor with fixed costs of $10,000 and variable costs of $.5/candle. If demand for Karla’s candles is 25,000, which option should she pick? 55) Mary is considering purchasing a machine from one of two suppliers. Supplier A’s machine has an annual fixed cost of $10,000 and a unit variable cost of $2.10. Supplier B’s machine has an annual fixed cost of $16,000 and a unit variable cost of $3.00. How large should Mary’s annual demand be in order to make Supplier B’s machine the better choice?