A news clipping service is considering moving their process from a manual process to computerized process. Currently, staff manually clip and photocopy articles of interest and mail them to its clients. If the service moves to a computerized process, staff will electronically input stories from most widely circulated publications into a database. Each new issue would be searched for key words, such as a client’s company name, competitors’ names, type of business, and the company’s products, services, and officers. When matches occur, affected clients would be instantly notified via an online network. If the story is of interest, it is electonically transmitted, so the client often would have the story and could prepare comments for follow-up interviews before the publication hits the street. The manual process has fixed costs of $400,000 per year and variable costs of $6.20 per clipping mailed. The prices charged the client is $8.00 per clipping whether the process is manual or computerized. The computerized process has fixed costs of $1,300,000 per year and variable costs of $2.25 per story electronically transmitted to the client. a) What is the break even point for the manual process? What is the break even point for the computerized process? b) Create a graph of profit that displays the break even points of each process. Create the graph for number of clippings between 200,000 and 250,000. BEP Crossover point + A news clipping service is considering moving their process from a manual process to computerized process. Currently, staff manually clip and photocopy articles of interest and mail them to its clients. If the service moves to a computerized process, staff will electronically input stories from most widely circulated publications into a database. Each new issue would be searched for key words, such as a client’s company name, competitors’ names, type of business, and the company’s products, services, and officers. When matches occur, affected clients would be instantly notified via an online network. If the story is of interest, it is electonically transmitted, so the client often would have the story and could prepare comments for follow-up interviews before the publication hits the street. The manual process has fixed costs of $400,000 per year and variable costs of $6.20 per clipping mailed. The prices charged the client is $8.00 per clipping whether the process is manual or computerized The computerized process has fixed costs of $1,300,000 per year and variable costs of $2.25 per story electronically transmitted to the client. c) If the service sends 150,000 clippings to clients, which process should the service use? d) If the service sends 250,000 clippings to clients, which proces should the service use? e) At what volume of stories, should they switch from a manual process to a computerized process? f) Create a graph to display the total cost of each process that includes the crossover point between the two processes. Create the graph to display the number of clippings between 150,000 and 300,000 BEP Crossover point QUESTION 1 What is the break even point, number of clippings, for the manual process? Provide o decimal places and no units. QUESTION 2 What is the break even point, number of clippings, for the computerized process? Provide o decimal places and no units. QUESTION 3 What is the cost of the computerized process for 150,000 clippings? Provide decimal places and no units. QUESTION 4 What is the cost of the manual process for 150,000 clippings? Provide 0 decimal places and no units. QUESTION 5 What is the cross over point, number of clippings, between the manual and computerized processes?
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"
