Answer:
A. The total costs of collating 500,000 per month With student help is $900
The total costs of collating 1,700,000 per month With student help is $3,060
The Total costs of collating 500,000 per month With the collating machine is $1,575
The Total costs of collating 1,700,000 per month With the collating machine is $1,635
B. The monthly volume at which the automatic process becomes preferable to the manual process is 885,714
Explanation:
A. In order to calculate the total costs of collating 500,000 and 1,700,000 per month With student help we would have to make the following calculations:
total costs of collating 500,000 per month With student help=(number of copies to be collating/average of copies per hour)*price per hour
total costs of collating 500,000 per month With student help=(500,000/5,000)$9
total costs of collating 500,000 per month With student help=$900
total costs of collating 1,700,000 per month With student help=(1,700,000/5,000)*$9
total costs of collating 1,700,000 per month With student help=$3,060
In order to calculate the total costs of collating 500,000 and 1,700,000 per month With the collating machine we would have to make the following calculations:
total costs of collating 500,000 per month With the collating machine= lease and operating costs+(number of copies to be collating/units collated)*additional price
Total costs of collating 500,000 per month With the collating machine= $1,550+(500,000/1,000)*$0.05
Total costs of collating 500,000 per month With the collating machine= $1,575
Total costs of collating 1,700,000 per month With the collating machine= $1,550+( 1,700,000/1,000)*$0.05
Total costs of collating 1,700,000 per month With the collating machine= $1,635
B. In order to calculate the monthly volume at which the automatic process becomes preferable to the manual process we would have to use the following formula:
the monthly volume at which the automatic process becomes preferable to the manual process is cost with students help=cost with collating machine
Therefore, (x/5,000)*$9=$1,550+(x/1,000)*$0.05
$8,750x=$7,750,000,000
x=885,714
The monthly volume at which the automatic process becomes preferable to the manual process is 885,714
