Break Even = Fixed Cost / (Selling Price â' Variable Cost) Xerox Book-In-Time Break Even Analysis)
Component Costs/Fixed costs$895000
Xerox has two clear distinct options. First option is to stick with what is best at printing, copying and delivering exclusively the Book-In-Time technology. Meaning, selling Book-In-Time equipment to all those elements of the value chain that may be interested. This includes publishers and printers. Major advantage with this option is the fact that Xerox operates in the market it fully knows, dominates and controls. As a market leader, having gained clear edge over main competitor IBM, Xerox can consolidate its position with the introduction of innovative new product "Book-In-Time solution" that could significantly reduce the publishing costs. On more advantage with this option is that, as SteenBurg laid down the facts, this option provides a real synergy for the company, integrating several pieces into a significant system and allowing the company to gain more rather than operating them separately. Importantly,...