Examlex

Solved

A Graphic Design Studio Is Considering Three New Computers

question 125

Essay

A graphic design studio is considering three new computers. The first model, A, costs $5000. Model B and C cost $3000 and $1000 respectively. If each customer provides $50 of revenue and variable costs are $20/customer, find the number of customers required for each model to break even.


Definitions:

Familiarity Effect

A psychological phenomenon whereby people tend to develop a preference for things merely because they are familiar with them.

Cognitive Dissonance

The state of having inconsistent thoughts, beliefs, or attitudes, especially as relating to behavioral decisions and attitude change.

Groupthink

A psychological phenomenon where the cohesion of the group becomes more important than considering facts realistically, leading to poor decisions.

Suppress Disagreement

The act of deliberately preventing or reducing the expression of differing opinions or conflicts.

Related Questions