You are currently running a freelance photography business by using a Canon EOS rebel camera that uses film. It costs you $20 per customer to process the film, convert it to digital format and host the pictures on a website. Upon researching your options for upgrade, you found out that there are two options that best suit your needs. A Nikon digital camera will cost $1000 to purchase and $10 to process the pictures. A Fuji camera will cost you $500 to purchase and $15 to process the pictures. You are able to charge your customers $25 each for your services.
Which camera should you choose if you cannot find more than 40 customers?
a. Buy Nikon
b. Buy Fuji
c. Both Nikon and Fuji are equally good
d. Keep using Canon EOS rebel
You decide to make a profit of $1000 dollars through your photography business so that you can take a trip to Europe. What is the fastest method by which you can raise the money? Assume that it is equally easy to attract customers with all three camera options available to you. (Hint: find the option that requires least number of customers to achieve your profit goal)
a. Stick with Canon EOS rebel
b. Buy the Nikon camera
c. Buy the Fuji camera
d. Not enough information given to calculate this