An investor has agreed to produce 100 waffles/day for a restaurant, which is willing to pay 5% for each waffle. A waffle machine is urgently required to begin production. Meanwhile, the investor quickly finds two waffle machines from a supplier. Each machine has an expected 1-year lifetime. Total investment required Unit cost Waffle Machine Brand: Wiaomi Energy Efficiency: Moderate before production to produce Notes by the investor "this one costs less at the beginning" "while using, this one 1 should offer better energy efficiency" 10.000 6 Brand: Riemens Energy Efficiency: High 20.000 b a. Please demonstrate the break-even points for both options, separately. b. After producing for one-year, which option will lead to more profits?

An investor has agreed to produce 100 waffles/day for a restaurant, which is willing to pay 5% for each waffle. A waffle machine is urgently required to begin production. Meanwhile, the investor quickly finds two waffle machines from a supplier. Each machine has an expected 1-year lifetime. Total investment required Unit cost Waffle Machine Brand: Wiaomi Energy Efficiency: Moderate before production to produce Notes by the investor "this one costs less at the beginning" "while using, this one 1 should offer better energy efficiency" 10.000 6 Brand: Riemens Energy Efficiency: High 20.000 b a. Please demonstrate the break-even points for both options, separately. b. After producing for one-year, which option will lead to more profits?

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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