Question
If Molly purchases the new equipment, how many additional items will she have to dry clean each month to break even.
In order to improve her service, molly is considering purchasing new dry- cleaning equipment, including a pressing machine that could substantially increase the speed at which she can dry clean cloth and improve their appearance. The new machinery cost $16,200 installed and can clean 40 cloths items per hour (or 320 items per day). Molly estimate her variable cost to be $0.25 per item dry-cleaned, which will not change if she purchases the new equipment. Her current fixed costs are $1700 per month. She charges customers $1.10 per clothing item
