PLEASE EXPLAIN THE ANSWER STEP BY STEP
Automatic versus Manual Processing
Photo Station Company operates a printing service for customers
with digital cameras. The current service, which requires employees
to download photos from customer cameras, has monthly operating
costs of $5,000 plus $0.20 per photo printed. Management is
evaluating the desirability of acquiring a machine that will allow
customers to download and make prints without employee assistance.
If the machine is acquired, the monthly fixed costs will increase
to $10,000...