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.

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Definitions:

Maintenance Rehearsal

Mental repetition of information to keep it in memory.

Infantile Amnesia

The inability of adults to retrieve episodic memories (memories of situations or events) from early childhood, typically before the age of 3 or 4 years.

Episodic Memories

Memories of specific events or episodes, including context details like when and where they occurred, and endowed with emotional charge.

Retroactive Interference

The interference of new learning with the ability to retrieve material learned previously.