Claudia's Copy Shop is deciding which 3-D printer to purchase, and it only has room for one printer. It can purchase the "Mini-Me"small-object printer, which would generate benefits of $50,000 at a cost of $5,000, or it can purchase the "Gargantuan"large-object printer which would generate benefits of $250,000 at a cost of $25,000. Based on these numbers, Claudia's Copy Shop should purchase
A) the "Mini-Me" printer.
B) the "Gargantuan" printer.
C) either printer, since the cost of each is exactly 10 percent of the benefit from each.
D) neither printer, since the cost of each is too high for a 3-D printer.

Question

Quizplus · Accepted Answer

The "Gargantuan" printer offers a higher absolute benefit ($250,000 - $25,000 = $225,000) compared to the "Mini-Me" printer ($50,000 - $5,000 = $45,000), making it the better choice despite both having the same cost-to-benefit ratio.

Claudia's Copy Shop Is Deciding Which 3-D Printer to Purchase